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Cooperative Governance Traditional Affairs for the financial year ANNUAL REPORT 2014/15

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Page 1: ANNUAL REPORT - COGTA

Cooperative GovernanceTraditional Affairs

for the financial year

ANNUAL REPORT2014/15

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for the financial year

ANNUAL REPORT2014/15

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Table of Contents

Chapter 1 Part A: General Information 41.1 Contact Information 5

1.2 List of Abbreviations/Acronyms 6

1.3 Foreword by the Minister 9

1.4 Deputy Minister’s Statement 11

1.5 Report of the Accounting Officer: Department of Cooperative Governance 13

1.6 Statement of responsibility and confirmation of the accuracy of the Annual Report 16

1.7 Strategic overview 16

1.8 Legislative and Other Mandates 17

1.9 Organisational Structure for DCoG 20

1.10 Entities reporting to the Minister 21

Chapter 2 Part B: DCOG Performance Information 262.1 Auditor General’s Report: Predetermined Objectives 27

2.2 Overview of Departmental Performance 27

2.3 Strategic Outcome Orientated Goals 33

2.4 Performance Information by Programme 34

Chapter 3 Part C: Governance 743.1 Introduction 75

3.2 Risk Management 75

3.3 Fraud and Corruption 75

3.4 Minimising Conflict of Interest 76

3.5 Code of Conduct 76

3.6 Health Safety and Environmental Issues 76

3.7 Portfolio committees 77

3.8 SCOA Resolutions 78

3.9 Prior modifications to audit reports 78

3.10 Internal Audit Unit 79

3.11 Internal Audit and Audit Committees 79

3.12 Audit Committee Report inserted 79

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Chapter 4 Part D: Human Resource Management 824.1 Introduction 83

4.2 Human Resources Oversight Statistics 83

4.3 Personnel related expenditure 83

4.4 Employment and Vacancies 85

4.5 Filling of SMS Posts 87

4.6 Job Evaluation 90

4.7 Employment Changes 92

4.8 Employment Equity 4 95

4.9 Signing of Performance Agreements by SMS Members 99

4.10 Performance Rewards 100

4.11 Foreign Workers 102

4.12 Leave utilisation 103

4.13 HIV/AIDS & Health Promotion Programmes 105

4.14 Labour Relations 106

4.15 Skills development 108

4.16 Injury on duty 110

4.17 Utilisation of Consultants 110

4.18 Severance Packages 112

Chapter 5 Part E: Financial Information 1145.1 Report of the Accounting Officer on vote 3: Department of

Cooperative Governance and Traditional Affairs • For the Year Ended 31 March 2015 115

5.2 Report of the Auditor-General to Parliament on vote 3:

Department of Cooperative Governance and Traditional Affairs 125

5.3 Annual Financial Statements for National Department of Cooperative Governance 131

The Annual Report for the Department of Traditional Affairs

can be read on the reverse side of this book

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Chapter 1Part A: General Information

1

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1.1 Contact Information

Department of

Cooperative Governance

No 87 Hamilton Street

Pretoria

0001

South Africa

Tel: 012 334 0777

Fax: 012 334 0603

E-mail: [email protected]

Website: www.cogta.gov.za

Published by:

The Department of

Cooperative Governance

and the Department of

Traditional Affairs

RP302/2014

ISBN: 978-0-9814215-8-2

COGTA Annual Report 2014/2015.

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1.2 List of Abbreviations/Acronyms

Acronyms Full Definition

AG Auditor-General

AOSIS African Online Scientific Information System

APP Annual Performance Plan

AU African Union

BCM Buffalo City Municipality

CFOs Chief Executive Officers

CIPs Comprehensive Infrastructure Plans

COGHSTAs Cooperative Governance Human Settlements and Traditional Affairs

CoGTA Cooperative Governance and Traditional Affairs

CRLRC Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities

CSIR Council for Scientific and Industrial Research

CTLDC Commission on Traditional Leadership Disputes and Claims

CWP Community Work Programme

DAFF Department of Agriculture, Forestry and Fisheries

DCOG Department of Cooperative Governance

DG Director-General

DGRV German Co-operative and Raiffeisen Confederation

DM Disaster Management

DM District Municipality

DoRA Division of Revenue Act

DPSA Department of Public Service and Administration

DRA Division of Revenue Act

DTA Department of Traditional Affairs

DTI Department of Trade and Industry

DWA Department of Water Affairs

EC Eastern Cape

ECD Early Childhood Development

ENE Estimates of National Expenditure

FBS Free Basic Services

FBSA Fire Brigade Service Act

FET Further Education and Training

FS Free State

G&IGR Governance and Intergovernmental Relations

GIS Geographic Information System

HCM Human Capital Management

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Acronyms Full Definition

HR Human Resource

ICT Information Communication Technology

IDDR International Day for Disaster Reduction

IDP Integrated Development Programme

IGR Intergovernmental Relations

IGRF Inter-Governmental Relations Framework

IMSI Intergovernmental Monitoring, Support and Intervention Bill

IT Information Technology

IUDF Integrated Urban Development Framework

KPA Key Performance Area

KSDLM King Sabata Dalindyebo Local Municipality

KZN Kwa-Zulu Natal

LED Local Economic Development

LGLN Local Government Learning Network

LGSETA local Government Sector Education and Training Authority

LGTAS Local Government Turnaround Strategy

LOGOLA Local Government Leadership Academy

M&E Monitoring and Evaluation

MBD Municipal Demarcation Board

MEC Members of Executive Committee

MIG Municipal Infrastructure Grant

MinMEC Ministers and Members of Executive Council

MISA Municipal Infrastructure Support Agent

MoUs Memorandum of Understanding

MPAC Municipal Public Accounts Committees

MPRA Municipal Property Rates Act

MSA Municipal Systems Act

MTEF Medium Term Expenditure Framework

MTSF Medium Term Strategic Framework

NCBCF National Capacity Building Coordinating Forum

NDMC National Disaster Management Centre

NDP National Development Plan

NDRMET National Disaster Risk Management Education and Training

NFSF National Fire Services Framework

NGO’s Non-Government Organisations

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Acronyms Full Definition

NHTL National House of Traditional Leaders

NIRP National Inventory Research Project

NMCCMC National Municipal Capacity Coordination and Monitoring Committee

NT National Treasury

NW North West

PAAP Post Audit Action Plan

PAJA Promotion of Administrative Justice Act

PMGS Provincial and Municipal Government Support

PMU Project Management Unit

POA Programme of Action

PSI Public Service Infrastructure

PSP’s Professional Service Providers

SA South Africa

SAB South African Breweries

SACN South African Cities Network

SADC Southern African Development Countries

SALGA South African Local Government Association

SANCO South African National Civic Organisation

SAPS South Africa Police Services

SARS South African Revenue Services

SASRIA South African Special Risks Insurance Association

SIU Special Investigation Unit

SMART Specific, Measurable, Attainable, Realistic, Timely

SMS Senior Management Staff

TLGFA Traditional Leadership Governance Framework Act

TOR Terms of Reference

TSUs Technical Support Units

UCLGA United Cities and Local Government of Africa

WC Western Cape

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1.3 Foreword by the Minister

This period marks an important milestone in the de-

velopment and maturation of our system of local

government. As we enter the next phase of develop-

mental local government, we are guided by the strides

we have made towards democratizing local governance,

the restoration of the dignity of our people through the

delivery of basic services and the cultivation of an envi-

ronment that is conducive for doing business and pro-

moting job creation within municipalities. We also enter

this phase fully cognisant of the challenges facing local

government – both self-imposed failures and challeng-

es that are dictated by the external environment, such

as the global economic meltdown.

Our assessment of the state of local government, con-

ducted in the 2014/15 year, revealed that while much

has been achieved in the 15-year existence of the local

government system, some serious challenges still per-

sist. The delivery of basic services needs improvement

in many municipalities. Efforts need to be made to bring

about political stability and improved governance. To

restore trust and strengthen the relationship between

municipalities and communities, credible ways and sys-

tems of citizen engagement need to be instituted. The

diagnosis further indicated that while about a third of

municipalities are doing well, the other third is at risk

and the rest require targeted support to make them

functional.

This Annual Report represents our effort to address the

weaknesses we have diagnosed, with the express in-

tent to improve the performance of municipalities that

were classified as “at risk” and “dysfunctional”. Our im-

mediate goal is to provide hands-on support and in-

terventions to ensure the migration of all dysfunctional

municipalities to better performing levels. Following the

launch of the Back-to-Basics programme by President

JG Zuma during the Presidential Local Government

Summit in September 2014, we have engaged with

municipalities, provincial governments and national

Mr. P Gordhan, MP Minister for Cooperative

Governance and Traditional Affairs

sector departments on strategies to eliminate dysfunc-

tionality in local government.

We are beginning to witness some positive shifts in

municipal governance and management broadly, which

signal that with the acceleration of the Back-to-Basics

programme, we are able to propel local government to

greater heights. We continue to provide support and

good governance packages to specific municipalities

such as Malamulele, Mogalakwena, Makana, Nelson

Mandela Bay Metro, Buffalo City and Oudtshoorn, to

restore and maintain stability. We vigilantly monitor leg-

islative compliance to ensure that municipalities employ

and attract qualified and committed personnel to take

responsibility for rendering services to communities in

municipalities.

The recently released municipal audit outcomes for

2013/14 confirm our view that with greater effort and

stronger intergovernmental cooperation, the negative

narrative around municipal financial management ca-

pabilities, can be reversed in favour of good governance

and better stewardship of the public resources in local

government.

I am also pleased to include the first annual report of

the Department of Traditional Affairs in accordance with

Treasury Regulations and the Public Finance Manage-

ment Act. This is a significant milestone for the Ministry

since the Department of Traditional Affairs is now able

to produce its own financial statements.

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We recognise the important role played by traditional

leaders in rural areas. It is therefore fundamental that

they collaborate and cultivate harmonious relations with

municipalities to advance development and service de-

livery. In this regard, we are finalising regulations for the

participation of traditional leaders in municipal councils,

informed by Section 81 of the Municipal Structures Act.

This will provide uniform norms and standards across

provinces, and strengthen the participation of traditional

leaders in local government structures. We call upon

councillors to engage local houses and traditional coun-

cils to discuss programmes impacting on rural commu-

nities. This will indeed promote and advance social co-

hesion, development and service delivery. We envisage

finalising the regulations during the 2015/16 financial

year. Our goal is to increase the number of municipali-

ties with harmonious relations with traditional councils

for improved service delivery.

We continue with the campaign on zero initiation

deaths. In the past few years, we have witnessed var-

ious forms of abuse, ranging from physical abuse to

deaths of initiates mainly due to illegal practices and

commercialisation of this custom. The following are

basic requirements for the establishment of initiation

schools, which we will monitor closely with our tradi-

tional leaders, the Houses of Traditional Leadership and

provinces:

§ Registered schools with permits.

§ Recognized surgeons.

§ Pre-screened initiates.

§ Consent by parents, guardians and the initiates.

§ Guardianship, custodianship and accountability ex-

pected from traditional leaders.

We have furthermore, developed a National Initiation

Policy towards regulating the practice of initiation. The

policy is currently being taken through the Cabinet pro-

cess. We envisage drafting legislation in 2015/16. The

policy is already being implemented by various provinc-

es from 2015/16.

The Traditional Affairs Bill has been finalised. In this

current financial year, it will be resubmitted to Cabinet

and subsequently tabled in Parliament. Once the Bill

is enacted, it will among others provide for the estab-

lishment of specific Khoi-San structures, as well as the

integration of recognised Khoi-San leaders into exist-

ing traditional leadership structures. The Bill will also

strengthen the developmental role of the institution of

traditional leadership.

We have made significant strides over the last year in

confronting the challenges facing the institution of tra-

ditional leadership in the 21st century. Through this we

aim to ensure that traditional leaders remain a corner-

stone of our modern democracy.

We remain committed to the principle of a responsive

and accountable local government, a local government

by the people, for the people.

Mr. P Gordhan, MP

MINISTER FOR COOPERATIVE GOVERNANCE

AND TRADITIONAL AFFAIRS

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1.4 Deputy Minister’s Statement

The past year has been momentous for local gov-

ernment. The entire sector came together at a

Presidential Local Government Summit convened by

President Zuma in September 2014, took stock of the

state of local government and adopted the Back to Ba-

sics programme.

The Back to Basics programme is a plan of action to

ensure that local government realises its constitutional

mandate by putting people first, ensuring delivery of

basic services, good governance and sound financial

management while building strong institutions.

Despite phenomenal progress in expanding access to

basic services, South Africa still faces the triple chal-

lenges of poverty, unemployment and inequality. Our

National Development Plan (NDP) places local govern-

ment at the centre of addressing these challenges. For

this reason, the Community Work Programme (CWP)

continues to be a vitally important government pro-

gramme entrusted to CoGTA to implement.

CWP provides employment of at least two days a week

to the unemployed to engage in socially useful work.

Among its core beneficiaries are women and young

people.

In the financial year ending March 2015 the CWP cre-

ated 202 634 work opportunities. Government is com-

mitted to expand the CWP to every municipality in the

country and to create one million work opportunities

by 2019.

Our National Development Plan also places the imper-

ative of transforming apartheid spatial patterns and the

effective management of urbanization at its core.

By 2050 eight in ten South Africans will live in urban ar-

eas. CoGTA has been tasked by Cabinet to co-ordinate

the formulation of government’s Integrated Urban De-

velopment Framework (IUDF) in line with the vision of

Mr. A Nel, MP Deputy Minister for

Cooperative Governance

the NDP. The IUDF offers a new deal for South Africa’s

towns and cities.

The NDP envisages that by 2030, South Africa should

start enjoying: “Liveable, safe, resource-efficient cities

and towns that are socially integrated, economically

inclusive and globally competitive, where residents ac-

tively participate in urban life.”

This vision is based on the imperatives of:

§ Access: To ensure people have access to social and

economic services, opportunities and choices.

§ Growth: To harness urban dynamism for inclusive,

sustainable economic growth and development.

§ Governance: To enhance the capacity of the state

and its citizens to work together to achieve social

integration.

§ Spatial transformation: To forge new spatial forms

in settlement, transport, social and economic areas.

Last year, Cabinet approved a draft Integrated Urban

Development Framework for public consultation. Cabi-

net expects to approve a final policy by the end of 2015.

The success or failure of the IUDF will mean the differ-

ence between being a nation united in our diversity, or

being a people living together separately.

As we mark the 60th anniversary of the Freedom Char-

ter, the IUDF gives meaning to the Charter’s vision that

“South Africa belongs to all who live in it.”

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The Back to Basics programme is a plan of action to

ensure that local government realises its constitution-

al mandate by putting people first, ensuring delivery of

basic services, good governance and sound financial

management while building strong institutions.

Despite phenomenal progress in expanding access to

basic services, South Africa still faces the triple chal-

lenges of poverty, unemployment and inequality. Our

National Development Plan (NDP) places local govern-

ment at the centre of addressing these challenges. For

this reason, the Community Work Programme (CWP)

continues to be a vitally important government pro-

gramme entrusted to CoGTA to implement.

CWP provides employment of at least two days a week

to the unemployed to engage in socially useful work.

Among its core beneficiaries are women and young

people.

In the financial year ending March 2015 the CWP cre-

ated 202 634 work opportunities. Government is com-

mitted to expand the CWP to every municipality in the

country and to create one million work opportunities

by 2019.

Our National Development Plan also places the imper-

ative of transforming apartheid spatial patterns and the

effective management of urbanization at its core.

By 2050 eight in ten South Africans will live in urban

areas. CoGTA has been tasked by Cabinet to co-ordi-

nate the formulation of government’s Integrated Urban

Development Framework (IUDF) in line with the vision

of the NDP. The IUDF offers a new deal for South

Africa’s towns and cities.

The NDP envisages that by 2030 South Africa should

start enjoying: “Liveable, safe, resource-efficient cities

and towns that are socially integrated, economically

inclusive and globally competitive, where residents ac-

tively participate in urban life.”

This vision is based on the imperatives of:

§ Access: To ensure people have access to social and

economic services, opportunities and choices.

§ Growth: To harness urban dynamism for inclusive,

sustainable economic growth and development.

§ Governance: To enhance the capacity of the state

and its citizens to work together to achieve social

integration.

§ Spatial transformation: To forge new spatial forms in

settlement, transport, social and economic areas.

Last year Cabinet approved a draft Integrated Urban

Development Framework for public consultation. Cabi-

net expects to approve a final policy by the end of 2015.

The success or failure of the IUDF will mean the differ-

ence between being a nation united in our diversity or

being people living together separately.

As we mark the 60th anniversary of the Freedom Char-

ter, the IUDF gives meaning to the Charter’s vision that

“South Africa belongs to all who live in it.”

Mr. A Nel, MP

DEPUTY MINISTER

FOR COOPERATIVE GOVERNANCE

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1.5 Report of the Accounting Officer: Department of Cooperative Governance

Mr. V Madonsela Director General:

Department for Cooperative Governance

The year 2014 witnessed the fifth national elections

of the democratic era. The newly-appointed Minis-

ter of COGTA, Minister Pravin Gordhan, in his July 2014

budget vote speech spelled out the Back to Basics

(B2B) approach as Government’s new programme of

action to improve the performance of local government.

The department, in partnership with other sector de-

partments, provinces and municipalities, is committed

to achieving the goals set out in the B2B programme,

as we celebrate the 15th year of democratic local gov-

ernment.

Following the launch of the national B2B programme

at a Presidential Local Government Summit held in

September 2014, the department conducted extensive

diagnostic assessments of the state of municipalities

in the country. Through this assessment process, the

department established that the top third of municipal-

ities are performing very well, the middle third are fairly

functional and performance is average, and the bottom

third are dysfunctional, and require significant interven-

tions to ensure that they become functional.

COGTA, in conjunction with all the provinces, has es-

tablished Back to Basics multi-sectoral, provincial task

teams. These teams comprise key sector departments

and institutions such as Water and Sanitation, Energy,

Transport, Rural Development and Land Reform, Na-

tional and Provincial Treasuries, Environmental Affairs,

the South African Local Government Association and

the Development Bank of Southern Africa.

During the first phase of B2B implementation, the pro-

vincial task teams conducted on-site visits to all munici-

palities from October to November 2014, with a view to

reviewing and confirming the diagnostic assessments

that were conducted during August 2014. Municipal

action plans and support packages were developed

during these visits. The action plans focus on various

areas such as governance matters, staffing and human

resource issues, financial management and maladmin-

istration, water supply, and infrastructure development

and delivery. The majority of provinces have launched

the B2B programme.

Unannounced visits to hotspot municipalities were also

undertaken by the Minister, Deputy Ministers, MECs

and political leadership of various provinces and sec-

tor departments to address service delivery and gover-

nance issues confronting these municipalities. Some of

the municipalities visited were Makana, Nelson Man-

dela Bay and Buffalo City in the Eastern Cape Province;

Moretele in North West Province; Oudtshoorn and

Swellendam in Western Cape; Mogalakwena and Thu-

lamela in Limpopo; Randfontein and Johannesburg in

Gauteng Province.

Based on the monthly B2B reports received from mu-

nicipalities and analysed by the Command Centre in

COGTA, we have witnessed gradual improvements in

municipalities in a number of areas. By holding regular

ward committee meetings, the public’s involvement in

local government processes has increased and so has

the trust and confidence in our municipalities. This has

been strengthened by reducing response times to ser-

vice delivery challenges, the holding of regular council

meetings, the establishment of sound financial man-

agement practices in the awarding of tenders and the

fast-tracking of Section 56 appointments, including the

positions of the municipal manager and chief financial

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14

officer. However, significant challenges remain to be

dealt with over the MTEF.

The total allocation for the Municipal Infrastructure Grant

(MIG) for the 2014/15 was R14,8 billion. As at 31 March

2015, 100 percent of the allocation was transferred to

municipalities to assist in addresssing service backlogs,

with a special focus on the 27 priority district munici-

palities. The projects implemented include those deal-

ing with water, sanitation, community or street lighting,

road and storm water, solid waste, sport and various

other public facilities. In addition, 40 municipalities were

assisted in reviewing their indigent policy to facilitate

the provision of Free Basic Services.

Strengthening the internal capacity of municipalities

for the delivery and maintenance of basic service infra-

structure is one of the challenges we face. During the

2014/15 financial year, the Municipal Infastructure Sup-

port Agency (MISA) deployed 53 Technical Consultants

to 121 municipalities across the country. In an attempt

to enhance municipal technical support and build ca-

pacity for the local government sector, MISA deployed

409 Apprentices, 27 Young Professionals, and 67 Expe-

riential Learners to a total of 64 municipalities. A total

of 139 trainee Water and Sanitation Process Controllers

were also deployed to municipalities to gain work ex-

perience, but to also provide much needed support to

municipalities.

We continue to work towards professionalising munic-

ipal administration and ending the incidence of irreg-

ular and inappropriate appointments of senior officials

in local government. The draft Local Government: Mu-

nicipal Staff Regulations and Guidelines, setting out uni-

form municipal staff systems and procedures, has been

completed. The setting of these uniform standards will

strengthen the capacity of municipalities to perform

their functions by ensuring that municipalities appoint

suitably qualified and competent persons.

The department was successful in facilitating the es-

tablishment of ward committees and strengthening

their oversight functions in terms of monitoring and re-

porting of community progress against the Integrated

Development Plans (IDPs), Service Delivery Business

Improvement Plans (SDBIPs) and ward level service

improvement plans. As at 31 March 2015, 4 277 ward

committees had been established.

Reducing poverty and unemployment is one of gov-

ernment’s priorities. COGTA tackles this through the

Community Work Programme (CWP). During 2014/15,

the CWP was implemented in 185 sites spread over

159 municipalities and benefitted communities liv-

ing in more than 2000 wards across the country. The

programme largely benefitted 202 447 participants,

with women constituting 75% of participants, and

youth making up 45%. By the end of the financial year

2014/15, the CWP programme underspent its budget

due to the implementation of changes to the new in-

stitutional model. The induction of new implementing

agents and the re-registration of participants took lon-

ger than anticipated. This meant that the inception of

new sites and procurement could only start during the

third quarter.

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The Integrated Urban Development Framework (IUDF),

which will guide the management of urban spaces, was

approved for public consultation by Cabinet in August

2014. Through the IUDF we aim to reimagine South Af-

rica’s urban spaces and create cities that are socially

integrated, economically inclusive and globally compet-

itive.

National policy documents developed by the depart-

ment include the Draft White Paper on Forest Services,

the Disaster Management Amendment Bill and the Na-

tional Fire Safety and Prevention Strategy. This will pro-

mote an integrated and coordinated system of disaster

management in the country.

In an effort to strengthen measures to prevent and

combat fraud and corruption in municipalities, anti-cor-

ruption technical working groups were established in all

provinces. The outcome of the assessment of forensic

reports commissioned by provinces, will assist in terms

of facilitating criminal, civil and asset forfeiture actions

in collaboration with law enforcement agencies.

In preparation for the fourth democratic local govern-

ment elections, the number of councillors for each mu-

nicipal council has been determined by MECs based on

the formulae that was published by the Minister in the

Government Gazette on 9 September 2014. The Munic-

ipal Demarcation Board (MDB) is currently redetermin-

ing the boundaries of municipalities that are financially

unviable. It is envisaged that final ward boundaries will

be handed over to the Independent Electoral Commis-

sion in November 2015.

The year 2014/25 has witnessed refreshing winds of

change blowing through the local government sector

by dint of the implementation of the Back to Basics

programme. We would like to thank everyone who

dedicated their time and energy to implement our pri-

orities. The sterling leadership by the Honourable Min-

ister Pravin Gordhan and the passion and dedication

of employees is demonstrated in the unqualified audit

opinion delivered by the Auditor-General. Together we

will Move South Africa Forward in the 2015/16 financial

year.

Mr Vusi Madonsela

DIRECTOR GENERAL: DEPARTMENT OF

COOPERATIVE GOVERNANCE

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1.6 Statement of responsibility and confirmation of the accuracy of the Annual Report

See Annexure E

1.7 Strategic overview The situation analysis outlines the context and circumstances that the Department will respond to with its programmes

during the next five years.

MISSIONOur mission is to facilitate cooperative governance throughout all

spheres of government in order to build a capable state that fulfills

its developmental role through:

§ Development of appropriate policies, integrated programmes

and regulatory mechanisms;

§ Promotion of service delivery support through enabling mecha-

nisms and intergovernmental relations;

§ Achievement of social cohesion through the creation of en-

abling mechanisms for communities to participate in gover-

nance; and

§ Monitoring and evaluating the implementation of cooperative

governance policies and programmes.

VALUESGuided by the spirit of Batho Pele, our values are:

§ Professionalism and integrity;

§ Goal orientation;

§ Participation; and

§ Innovation and Service Excellence.

Performance Environment

VISIONAn integrated, responsive,

accountable and effective

system of Cooperative

Governance.

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1.8 Legislative and Other Mandates

Constitutional mandate

CoGTA’s mandate is primarily derived from Chapters

3, 5, 6, 7, and 9 of the Constitution of the Republic of

South Africa, 1996, hereafter referred to as the Consti-

tution.

§ Chapter 3 - This chapter deals with cooperative

government and intergovernmental relations. The

Department will have to ensure that we observe and

adhere to the principles expressed in this chapter

and that we conduct our activities within its param-

eters.

§ Chapter 5 - This chapter deals with national inter-

vention in provincial administration when a province

cannot or does not fulfil its executive obligations in

terms of the Constitution or legislation.

§ Chapter 6 - This chapter deals with provincial inter-

vention in local government, in particular when mu-

nicipalities are unable to fulfil their executive obliga-

tion. Chapter 6 is also relevant when a municipality,

as a result of financial crisis, breaches its duties to

provide basic services in order to meet its financial

obligations.

§ Chapter 7- The chapter deals inter alia with munic-

ipalities in cooperative governance. The Department,

by legislation, must support and strengthen the ca-

pacity of municipalities to manage their own affairs,

exercise their powers and perform their functions.

§ Chapter 9 - This chapter deals with those institu-

tions whose role requires strengthening the consti-

tutional democracy of the country. The DCoG has to

comply with all legislative frameworks in this chapter

in order to conform with legislative frameworks fall-

ing under the auspices of institutions such as the

Auditor-General and Public Protector.

Our primary mandate is to:

§ Develop and monitor the implementation of nation-

al policy and legislation seeking to transform and

strengthen key institutions and mechanisms of gov-

ernance to fulfil their developmental role.

§ Develop, promote and monitor mechanisms, sys-

tems and structures to enable integrated service de-

livery and implementation within government.

§ Promote sustainable development by providing sup-

port to and exercising oversight over provincial and

local government.

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Legislative mandate

As a national department, our function is to develop national policies and legislation with regard to local government and

to monitor, inter alia, the implementation of the following:

Name of Legislation

Mandate

Municipal Property Rates Act, 2004 (Act No.6 of 2004)

To regulate the power of a municipality to impose rates on property; to exclude certain properties from rating in the national interest; to make provision for municipalities to im-plement a transparent and fair system of exemptions, reductions and rebates through their rating policies; to make provision for fair and equitable valuation methods of properties; and to make provision for an objections and appeals process therewith.

Local Government:

Municipal Finance Management Act, 2003 (Act No 56 of 2003)

To secure sound and sustainable management of the financial affairs of municipalities and other institutions in the local sphere of government; to establish treasury norms and stan-dards for the local sphere of government; and to provide for matters connected therewith.

Disaster Manage-ment Act, 2002 (Act No. 57 of 2002)

To provide for:

• An integrated and coordinated disaster management policy, which focuses on pre-venting or reducing the risk of disasters, mitigating the severity of disasters, emergency preparedness, rapid and effective response to disasters and post-disaster recovery.

• The establishment of national, provincial and municipal disaster management centres.• Disaster management volunteers.• Matters incidental thereto.

Local Government:

Municipal Systems Act, 2000 (Act No. 32 of 2000)

To provide for the core principles, mechanisms and processes that are necessary to enable municipalities to move progressively towards the social and economic upliftment of local communities; to ensure universal access to essential services that are affordable to all; to define the legal nature of a municipality as including the local community within the municipal area, working in partnership with the municipality’s political and administrative structures; to provide for the manner in which municipal powers and functions are exer-cised and performed; to provide for community participation; to establish a simple and en-abling framework for the core processes of planning, performance management, resource mobilisation and organisational change, which underpin the notion of developmental local government; to provide a framework for local public administration and human resource development; to empower the poor and ensure that municipalities establish service tariffs and credit control policies that take their needs into account, by providing a framework for the provision of services, service delivery agreements and municipal service districts; to provide for credit control and debt collection; to establish a framework for support, moni-toring and standard setting by other spheres of government in order to progressively build local government into an efficient, frontline development agency capable of integrating the activities of all spheres of government for the overall social and economic upliftment of communities in harmony with their local natural environment.

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Name of Legislation

Mandate

Local Government:

Municipal Structures Act,1998 (Act No. 117 of1998)

To provide for the establishment of municipalities, in accordance with the requirements relating to categories and types of municipality; to establish criteria for determining the category of municipality to be established in an area; to define the types of municipality that may be established within each category; to provide for an appropriate division of functions and powers between categories of municipality; to regulate the internal systems, structures and office-bearers of municipalities; to provide for appropriate electoral systems; and to provide for matters in connection therewith.

The Intergovern-mental Relations Framework Act(Act No. 13, of 2005)

The objective of this Act is to facilitate coordination by the three spheres of government in the implementation of policy and legislation. It is a Framework Act, which allows for flexibility between the spheres in meeting the challenges within the conduct and practice of cooperative government. It also provides for the basic architecture of intergovernmental structures and for processes to guide the settlement of intergovernmental disputes.

Local Government:

Municipal Demarca-tion Act, 1998 (Act No. 27 of 1998)

To provide for criteria and procedures for the determination of municipal boundaries by an independent authority; and to provide for matters connected thereto.

Organised Local

Government Act, 52 of 1997

To provide for the recognition of national and provincial organisations representing the different categories of municipalities; to determine procedures by which local govern-ment may designate representatives to participate in the National Council of Provinces; to determine procedures by which local government may consult with national and provincial government; to determine procedures by which local government may nominate persons to the Financial and Fiscal Commission; and to provide for matters connected therewith.

Fire Brigade Ser-vices

Act, 99 of 1987

To provide for the establishment, maintenance, employment, coordination and standardisa-tion of Fire Brigade Services; and for matters connected therewith.

Remuneration of Public Bearers Act, 20 of 1998

To provide for a framework determining the salaries and allowances of the President, members of the National Assembly, permanent delegates to the National Council of Provinces, Deputy President, ministers, deputy ministers, traditional leaders, members of provincial Houses of Traditional Leaders and members of the Council of Traditional Lead-ers; to provide for a framework determining the upper limit of salaries and allowances of Premiers, members of Executive Councils, members of provincial legislatures and mem-bers of Municipal Councils; to provide for a framework determining pension and medical aid benefits of office bearers; to provide for the repeal of certain laws; and to provide for matters connected therewith.

Local Government:

Cross-Boundary

Municipal Act,

29 of 2000

To give effect to section 155(6A) of the Constitution by authorising the provincial execu-tives affected to establish cross-boundary municipalities; to provide for the re-determina-tion of the boundaries of such municipalities under certain circumstances; and to provide for matters connected therewith.

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1.9 Organisational Structure for DCoG

MINISTRY Cooperative Governance

and Traditional Affairs

Mr P Gordhan (MP)

CHIEF DIRECTORATE

Communication and Marketing

CHIEF DIRECTORATELegislative Review

and Drafting

Ms V Ndah

CHIEF DIRECTORATE

Internal Audit

Ms S Ramanand

CHIEF OPERATING

OFFICERDr KL Sebego

Policy, Research and Knowledge

Management Support

Mr T Fosi

Department of Cooperative Governance

DIRECTOR-GENERAL Mr V Madonsela

BRANCHCorporate and

Financial Services

Ms D Snyman (Acting)

National Disaster

Management Centre

Mr K Terry

BRANCH Infrastructure and Economic Development

Mr T Fosi (Acting)

Governance and Inter–governmental

Relations

Mr. KTM Sigidi

BRANCHProvincial and

Municipal Government

Support

Ms S Majiet

Department of Cooperative Governance

DEPUTY MINISTERMr A Nel (MP)

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1.10 Entities reporting to the Minister

ment) was included in the scope of the review. The

Infrastructure Grant Review has reviewed and contin-

ues to review ways to maximise existing resources via

reforms to capital grants to municipalities, rather than

seeking solutions that require additional funds or signif-

icant reforms to operating or capacity building grants.

SALGA developed and launched the multidisciplinary

Municipal Audit Support Programme (MASP) which is

based on 4 pillars: Leadership, Governance, Financial

Management and Institutional Capacity to assist all mu-

nicipalities to maintain good audit outcomes (unquali-

fied with no findings or with findings) and to improve

poor audit outcomes (disclaimer, adverse, qualified and

audits not finalized) by focusing on the 4 pillars. The

MASP is placing particular emphasis on those munic-

ipalities with adverse/disclaimer opinions as well as

those municipalities whose audits were not finalized by

the legislated deadline – these were termed “red zone”

municipalities. SALGA also finalized an agreement with

a research institute called PARI to perform research into

the Red Zone Municipalities. During the financial year,

22 municipalities were assisted and nine of those have

migrated from the red zone.

The Water Services Master Classes were conducted

during this financial year. As part of a wider package

of interventions SALGA developed guidelines to assist

municipalities to improve their relationship with min-

ing houses in the delivery of social/rental housing. The

guidelines, which plainly set out the legislation and re-

lated responsibilities of the mining companies towards

the municipality and community, will serve to strength-

en the position of municipalities so that they more firm-

ly engage with mining companies and leverage private

sector resources for the achievement of development

priorities as set out in the IDP. As part of the Dutch

Ministry that funds social housing programme to im-

1.10.1 South African Local Government Association (SALGA)

The South African Local Government Association (SAL-

GA) was founded in December 1996 and is mandat-

ed by the Constitution to assist in the comprehensive

transformation of local government. The Organised Lo-

cal Government Act (1998) recognises the association

as representative of organised local government, and

allows organised local government to designate up to

10 part-time representatives to the National Council of

Provinces in Parliament and to nominate two represen-

tatives to the Financial and Fiscal Commission, which

advises government on budget issues. The association

participates in intergovernmental structures at a provin-

cial and district level, and is therefore able to influence

national and provincial legislation and gauge its impact

on local government.

Highlights for 2014/15 Financial Year

During the year under review SALGA participated in in-

tergovernmental structures, including the NCOP where

the designation of the part-time representatives to the

NCOP improved the visibility of SALGA and provided

consistency in terms of representation, advocating and

lobbying for the interests of local government. As part

of its lobbying mandate, SALGA lobbied the 2014 Bud-

get Forum for Municipal Demarcation Transition Grant

for municipalities to be affected by the new proposed

municipal demarcation boundaries. The transition grant

is to subsidise additional institutional and administrative

costs arising from boundary changes to take effect sub-

sequent 2016 Elections.

Through participation in the Infrastructure Grant Review

process, SALGA ensured that the issue of renewal (re-

furbishment, rehabilitation and overall asset manage-

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prove the capacity of municipalities to deliver social and

rental housing, SALGA undertook a number of projects

in 2014/15, targeting the 13 municipalities which have

been selected for the delivery of social housing. For

three metro municipalities namely, eThekwini, Nel-

son Mandela and Mangaung, hands on support was

provided in the form of policy, strategy development,

and project implementation. The overall impact was to

strengthen the municipalities to deliver social housing,

specifically as a result of technical assistance and ad-

vice provided by SALGA and peer learning.

On Electricity matters, SALGA signed a Memorandum

of Understanding (MOU) with Eskom on 30 October

2014 to establish a cooperative and collaborative work-

ing relationship between Eskom, SALGA (and ultimate-

ly, municipalities) to work towards the long term sus-

tainability of electricity reticulation. The MOU highlights

the electricity distribution industry issues in general,

and the specific operational challenges impacting de-

livery of electricity to end users that the partnership will

address.

During the year under review, SALGA continued to build

on its strength as an effective employer organisation. A

total number of 1566 cases were recorded during the

year under review, including both conciliation, litigation

and arbitration. Effective legal representation by SALGA

resulted in the long standing Wage Curve dispute being

finalized by the Labour Appeal Court in favor of affected

municipalities. 274 municipal employees across prov-

inces were trained on Task Job Evaluation (JE), who will

then serve in their respective various JE unit structures

all municipalities.

SALGA has worked with the Department of Science

and Technology (DST) and CSIR in building technical

skills in the waste management sector through the de-

velopment of formal qualifications on waste manage-

ment. The sector did not have a dedicated qualification

and as such two postgraduate degrees specifically on

waste management were developed: the BSc Hons

(Waste Management) through the University of North

West and MSc (Waste Management) through the Uni-

versity of Natal. The first intake of students was 2015

for the BSc Hons and the MSc will commence with the

enrolment in 2016 at the University of Natal.

The knowledge sharing and advocacy in renewable en-

ergy and energy efficient innovations activities have been

undertaken mainly in the form of workshops. Most of

these knowledge sharing workshops were structured ac-

cording to the priorities identified in the SALGA Renew-

able Energy and Energy Efficient (REEE) strategy for local

government, and in particular on:

i) institutionalisation of the energy mandate (energy

strategies),

ii) municipal own energy efficiency and

iii) energy access for all.

Around 120 municipalities participated in different en-

ergy efficiency and knowledge sharing innovations on

energy efficiency and renewable energy. The roll out of

the small towns regeneration training programme creat-

ed an awareness among municipal officials on why and

how should small town regeneration be prioritised as vi-

tal spaces for regional and local economic development,

provided a platform for economic development practi-

tioners to share international and national good practice

on implementing sustainable and meaningful small town

regeneration approaches, contextualised small towns re-

generation as a systematic and holistic approach cover-

ing areas such as governance, infrastructure provision,

maintenance and financial management, which must

find expression in the overall Integrated Development

Plan of municipalities, and equipped participants with a

practical approach of identifying stakeholders, defining

their role(s) and meaningful participation.

The Launch and establishment of the SALGA Centre for

Leadership and Governance (SCLG) is another milestone

for SALGA. The SCLG will develop municipal leaders who

will drive a development agenda through active reflec-

tion and thought leadership in the sector. The medium

to long term implementation of coherent learning and

knowledge programmes through the SALGA Centre for

Leadership and Governance should result in improved

audit reports from the Auditor General, enhancement

and evidence based decision making at a local level and

improved decision making at all spheres of government

as local leaders take up national and provincial leadership

positions. SALGA also facilitated training (Portfolio based

training) and Leadership Development Programmes for

Councillors and Senior Municipal Officials benefiting a

total of 1,149 (Councillors and Senior Municipal) officials.

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During the year under review, SALGA’s enhanced pro-

filing of local government in continental and global

forums and platforms, as well as strengthening local

governance and decentralisation globally. SALGA also

played a critical role in re-unifying the United Cities and

Local Governments of Africa (UCLGA) and are currently

leading the Southern African chapter of the organisa-

tion, particularly to strengthen local democracy in our

neighbouring countries and support the establishment

of local government associations in the SADC region.

SALGA played a role in the UCLG and Commonwealth

Local Government Forum (CLGF) and other international

organisations.

1.10.2 South African Cities Network (SACN)

South African Cities Network (SACN) is an established

network of South African cities and partners that en-

courages the exchange of information, experience and

best practices on urban development and city manage-

ment. It is an initiative of the Minister for Cooperative

Governance and Traditional Affairs and nine city mu-

nicipalities, in partnership with the South African Local

Government Association (SALGA). The SACN shares

knowledge of large city government experiences within

the global and national economic development con-

texts; and promotes partnerships between or among

the spheres of government in the interests of enhancing

good city governance in South Africa.

During the year under review, the work of SACN has

continued to be informed by the 2011–2016 medi-

um-term strategic framework and business plan, which

clearly articulates the three key challenges facing South

African local governments as:

i) The need for qualitative spatial transformation;

ii) Dealing with city challenges and vulnerabilities that

are exacerbated by climate change and rapid urban-

isation; and

iii) The electorate’s negative image of local government.

Highlights for 2014/15 Financial Year

Execution of the 2015 National Urban Conference was

a key highlight for this financial year, an event which

is associated with the concerted production of the

next edition of the State of South African Cities Report

(2016). This event, the 4th South African Urban Confer-

ence, was convened by the SACN in partnership with

the City of Tshwane, the Department of Cooperative

Governance (DCOG), the South African Local Govern-

ment Association (SALGA) and the Dialogue Facility

of the European Union Delegation to South Africa. The

conference brought together urban sector experts and

stakeholders who participated in an interactive and rig-

orous programme of dialogue and engagement, with

the aim of:

§ Facilitating urban policy and planning dialogue with

key urban development stakeholders, experts and

partners (local and international);

§ Interrogating and enhancing preliminary data and

findings towards the 2016 State of South African Cit-

ies Report (SOCR IV);

§ Contributing to strengthening of the IUDF; and

§ Building up national content towards the ACCSF and

7th AfriCities Summit.

The Conference was received to critical acclaim (as per

event evaluation, stakeholder feedback, and media cov-

erage), and was successful in meeting its objectives as

above.

Beyond this highlight, SACN’s Annual Performance Plan

for 2014/15 has been implemented and monitored based

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upon SACN two primary categories of output measure-

ment: learning events (which are key outputs of the

knowledge sharing and dissemination function), and

publications (which are outputs of the knowledge gener-

ation function). During the year under review, SACN suc-

cefully delivered 84 outputs in the form of 50 knowledge

exchange and networking events and 34 knowledge

products.

From a substantive perspective, during 2014/15 SACN

published research products that focused on key topics

such as:

§ The roles of transport and human settlement in spa-

tial transformation – exemplified by the two follow-

ing books:

- From Housing to Human Settlements – Evolving

perspectives (Sep 2014) This publication explores

the housing and human settlements context in

South Africa and the particular challenges and

opportunities that will affect the delivery of sus-

tainable human settlements (SHS). This will be

informed by an understanding of the city as a

settlement made up of components that together

add to its successful functioning and also to its

ability to give effect to spatial transformation.

- How to Build Transit Oriented Cities – Public trans-

port will play an essential role in addressing the

spatial and socioeconomic inheritance in South

Africa. It will also help define the city of the future.

But we have to get this right, as the investment we

make now will determine our built environment

legacy. There are many lessons to be learnt from

all over the world, from the continent, and right

here in South Africa. While not aiming to be an

exhaustive account, this book begins to reflect on

these lessons and opportunities for cities in their

pursuit of efficient and integrated public transport

that improves mobility, inclusivity and access.

§ Environmental issues – energy, emissions, and state

of environment reporting.

§ Urban vulnerability and governance.

§ Urban safety.

§ Spatial transformation

§ Secondary cities.

SACN played a significant role in driving the drafting of

the Integrated Urban Development Framework (IUDF),

which was successfully launched during the year under

review. This involvement forms part of SACN’s ongoing

engagement with stakeholders to deal with urban gov-

ernance, urban policy and alternative finance of cities,

data challenges and reporting systems.

SACN continued to convene Reference Groups as part of

its knowledge sharing such as State of Cites Report Ref-

erence Group, Cities Expanded Public Works Reference

Group, Knowledge Managers Reference Group, Spatial

Planning and Land Use Reference Group, City Water

Managers Forum, Energy Reference Group, Waste Man-

agement Reference Group, Public Transport Reference

Group and Human Settlements Reference group.

1.10.3 Municipal Demarcation Board (MDB)

The Municipal Demarcation Board is an independent

authority responsible for determining municipal bound-

aries in terms of Section 155(3) (b) of the Constitution.

The independence of MDB is also protected by section

3 of the Local Government Municipal Demarcation Act

(1998) and various judgements by the Constitutional

Court. In addition to determining and re-determining

municipal boundaries, the board is also mandated to

delimit wards for local elections and assess the capacity

of municipalities to perform their functions.

Highlights for 2014/15 Financial Year

During the 2014/2015 financial year, the Municipal De-

marcation Board embarked on the ward delimitation

process in preparation for the 2016 local government

elections. As a result, a considerable part of the year

was dedicated to delimit wards in 224 municipalities

that qualify to have wards.

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tation process. The request for redetermination of the

municipal boundaries affected municipalities in seven

(7) provinces, namely Eastern Cape, KwaZulu Natal,

Limpopo, Mpumalanga, Northern Cape, North West

and Free State in the 2014/2015 financial year.

After receiving the complete list of the municipalities to

be considered for redetermination, MDB proceeded to

publish section 26 notices, i.e. to indicate the intention

to consider the matters, and invite written representa-

tion and views within 21 days after the publication of

the notice. A total of 207 submissions from the public

were received before the end of March 2015.

During the year under review, the MDB rendered ad-

vice to established planning and transformation struc-

tures. Presentations on the ward delimitation process

were made to various forums including Technical Pres-

idential Coordination Council and MinMEC. The Board

worked with the Financial and Fiscal Commission which

led to the Minister of Finance committing to Municipal

Demarcation Transitional Grant for all municipalities af-

fected by amalgamations and categorisation. A model/

framework for the cost structure of the implementation

of major redeterminations is being developed in con-

junction with FFC, SALGA and National Treasury.

A nation-wide ward delimitation consultation process

launch event was held on 09 December 2014, in Hibis-

cus Coast Local Municipality, KwaZulu-Natal Province.

Officials in all the 224 metropolitan and local munici-

palities qualifying to have wards were invited, together

with all the stakeholders in local government, including

COGTA, IEC, SALGA, and the surrounding communities.

The information packs were distributed consisting of

maps of draft wards, and documentation on the criteria

for drafting the wards, and the schedule of public con-

sultation meetings which were to commence in Janu-

ary 2015. An exhibition was held in collaboration with

SALGA at its National Members Assembly as well as

national media briefing to clarify the mandate and roles

of MDB. During 2014/2015 a five year Communication

and Brand Management Strategy was approved by the

Board with the aim to position the Board in line with its

new vision and mission and to enhance public partici-

pation and stakeholder engagement.

The ward delimitation process commenced in Septem-

ber 2014 and the first draft maps were all completed by

November 2014. A participatory process took place in

which technical staff of municipalities such as planners,

GIS officials and other stakeholders – with the knowl-

edge of the layout of the municipality – were invited to

make contributions in the first draft of the ward bound-

aries. The resultant draft wards were unveiled and re-

leased to the public during the ward delimitation pro-

cess launch held on 09 December 2014, in Hibiscus

Coast, KwaZulu-Natal Province.

As part of the stakeholder engagement process, pro-

vincial information sharing sessions were held which

comprised of Provincial Departments of Cooperative

Governance and Traditional Affairs (COGTA), House of

Traditional Leaders (HTL), Independent Electoral Com-

mission (IEC), and the South African Local Government

Association (SALGA). The sessions were held in Lim-

popo, Western Cape, Mpumalanga, Free State, North

West, Eastern Cape, Northern Cape and Gauteng.

Since the formal launch of the ward delimitation process,

the Municipal Demarcation Board (MDB) embarked on

ward delimitation public consultation meetings, which

were scheduled to start in mid-January 2015. 70% of all

municipalities qualifying to have wards were consulted

by the end of March 2015. There were initially 224 ward

delimitation public consultation meetings scheduled

across the country, most of which were conducted as

scheduled. As of 18 March 2015, the number of public

meetings held in each province are presented as fol-

lows: Northern Cape (96.30%), Western Cape (84%),

Mpumalanga (77.78%), Free State (75%), North West

(57.89%), Gauteng (57.14%), Eastern Cape (56.41%),

Limpopo (56%), and Kwazulu-Natal (45.45%).

During the year under review, MDB received requests

from the Minister of COGTA, in line with Section 22 of

the Local Government: Municipal Demarcation Act 27

of 1998, to consider redetermination of outer bound-

aries of some municipalities in order to improve their

financial viability. This is the first request of this nature

since the inception of the Municipal Demarcation Board

and it certainly lifts the bar with regard to the perfor-

mance of the MDB at a time that is already character-

ised by intense activity as a result of the ward delimi-

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Chapter 2Part B: DCOG

Performance Information

2

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2.1 Auditor General’s Report: Predetermined Objectives

The Auditor General audited the reported information

on predetermined objectives against the criteria for use-

fulness and reliability. The findings and other legal refu-

latory requirements are outlined in the Auditor General’s

report. (See Part E)

2.2 Overview of Departmental Performance

2.2.1 Service Delivery Environment

Local government is a primary site for the delivery of ser-

vices in South Africa. Since 1994 tremendous progress

has been made to deliver water, electricity, sanitation

and refuse removal - at rates of delivery unprecedented

anywhere in the world. Together with many other initia-

tives such as the introduction of social grants, the gov-

ernment has made real inroads in alleviating poverty.

Despite these advances in service delivery since

1994, the pace of improvement in services and the qual-

ity of services provided do not in many cases match the

expectations of many citizens. There are an increasing

number of service delivery protests. The core of the

demands expressed in service delivery protests centre

around electricity, water; housing; and road demands.

Other matters raised during service delivery protests

include allegations of corruption, nepotism, tender ir-

regularities, cadre deployment, not attending to griev-

ances raised by communities, poor communication and

responses to the community, and poor representation

by ward councillors.

In recent years, a new generation of challenges in ser-

vice provision has become evident. These include the

ability of municipalities to sustain these services in the

face of economic pressures, increase in demand or op-

erational and maintenance problems, as well as ensur-

ing quality and reliability. The President has acknowl-

edged that it is impossible to correct all the distortions

and social engineering of the colonial period overnight

or in only 18 years.

In 2014 COGTA did a review of South Africa’s 278

municipalities, which revealed that the top third of mu-

nicipalities manage to do the basics right and perform

their functions at least adequately. Within this group,

there are a small group of top performers that are doing

extremely well.

The middle third of municipalities reviewed are relative-

ly functional, but there remain some worrying signs of

poor performance or decline. This middle group can be

classed as ‘at risk’, since if left unchecked these could

presage a further decline.

The bottom third of municipalities are failing our people

dramatically and the basic mechanisms to perform their

functions are not in place. These municipalities require

urgent intervention in order to correct the decay in the

system.

The DCoG mandate is to improve coordination across

the three spheres of Government and to make sure that

provinces and municipalities carry out their service de-

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livery and development functions effectively. The NDP

has identified a need for greater stability and cohesion

within and across the three spheres of government, and

also between government and the people. To achieve

this, we need to considerably improve service delivery

across all spheres of government, in the face of huge

capacity and resource constraints. The warning signs

intrinsic to the service delivery protests reflect thus

at the core of DCoG’s mandate. In order to improve ser-

vice delivery through cooperative governance:

§ all provinces have established Back to Basics

multi-sectoral Provincial Task Teams;

§ MECs present reports on B2B implementation at

MinMecs where their challenges and requests for

assistance are addressed;

§ MECs also indicate how municipalities in their prov-

inces are performing;

§ Unannounced and planned visits are made to mu-

nicipalities and Council sittings by the Ministry, and

or MECs; and

§ Sectoral departments e.g. Water; Public Works and

Energy were invited to join all the provincial teams.

Service delivery depends on sound municipal fi-

nance. There are many ways in which good financial

governance can be measured. The annual audits, regu-

lar budget reviews and the Section 71 National Treasury

reports all assist in such financial monitoring. One way

is to look at the way municipalities spend the Municipal

Infrastructure grant:

§ Over the last three municipal financial years (July

2011/12- June 2013/14) the number of municipalities

achieving 100% expenditure on their MIG funding

has increased from 110 – 130.

§ The municipalities spending less than 51% of their

allocation have decreased from 31 to 16 municipali-

ties over the same period.

Concomitant with this collapse are problems associ-

ated with municipal governance, capacity and fi-

nancial viability. The low rate of collection of revenue

continues to undermine the ability of municipalities to

deliver services to communities. In September 2014,

the consumer debt to municipalities stood at R98, 9

billion. This debt comprised R 5,5 billion by national

and provincial departments, R22,8 billion by business,

R60 billion by households and the remainder by oth-

er debtors. The arrear debt by national and provincial

departments has accumulated over time, as a result of

disputes over municipal invoices. Cogta in collaboration

with the Department of Public Works has conducted

an audit and verified contested invoices. This exercise

has resulted in affected government departments pay-

ing a total amount of R1,5 billion to relevant municipali-

ties between September and 31 December 2014. In the

second phase the remaining contested invoices will be

dealt with.

Public participation is of vital importance in the effec-

tive functioning of municipalities. Many municipalities

lack a culture of public service, and there are slow or

inadequate responses to service delivery challenges,

which are in turn linked to the breakdown of trust be-

tween Councils and communities. Social distance by

our public representatives is reflected in inadequate

public participation and poorly functioning ward coun-

cillors and committees. It will be critical to strengthen

participative democracy in our municipalities. To this

effect COGTA is facilitating the establishment of ward

committees and strengthening their oversight function

in terms of monitoring and reporting to community

progress against Integrated Development Plans (IDPs),

Service Delivery Business Improvement Plans (SDBIPs)

and ward level service improvement plans. As at 31

March 2015, 4277 ward committees had been estab-

lished.

This is compounded by widespread instances of

rent seeking and corruption amongst public repre-

sentatives and business, reflecting a broader breakdown

in the values and good governance principles. Accord-

ing to the Special Investigating Unit it is estimated that

20-25% of state procurement expenditure, amounting

to roughly R30 billion a year, is wasted through over-

payment or corruption. Municipalities have been found

to be most prone to corruption where there are sys-

temic weaknesses and acute skill shortages. Improv-

ing the overall capacity and functioning of the public

service, particularly in relation to financial systems and

controls, information systems, and overall management

capability might be the single most effective way of

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deterring corruption. For the Department of Coopera-

tive Governance this means that systems to detect and

act against corruption should be strengthened and that

there should be greater cooperation across the spheres

of government in dealing with corruption.

The lack of professionalism in municipal governance

remains a serious challenge. There are for too many

instances both of inappropriate placements and

skills not measuring up to requirements. The emphasis

for 2014-15 was to focus on:

§ The filling of critical senior manager posts;

§ Developing a record of dismissed staff and staff who

resigned prior to finalisation of disciplinary proceed-

ings. The database will serve as a central repository

of information pertaining to disciplinary proceedings,

which will assist in fast tracking disciplinary cas-

es and serve as a tool to enable municipalities to

“blacklist” staff members who have been dismissed

for misconduct.

One of the findings of the National Planning Commis-

sion’s diagnostic analysis was that the spatial and

gender patterns of development and underdevel-

opment remain deeply entrenched. In this regard

the Department of Cooperative Governance should play

a role to strengthen spatial planning in municipalities

to improve the balance between location of jobs and

people. Despite the introduction of integrated planning

in the White Paper on Local Government and the Mu-

nicipal Systems Act, integration remains a challenge.

Dealing with this challenge requires a shift in thinking.

Firstly, Integrated Development Plans should not be

seen as local government plans, but rather as the ex-

pression of all of us, both government and non-govern-

ment partners at a local space. Secondly, it is important

to appreciate the hierarchy of plans and their relation-

ship to each other. Long Term Municipal Growth Strat-

egies and Spatial Development Frameworks provide a

framework for sector specific interventions which re-

quires municipalities to develop credible plans that pro-

vide certainty and guide all role players. Lastly, horizon-

tal alignment at municipal level is important to ensure

maximum impact through balancing short term needs

and long-term needs. Going forward, the Department

will strengthen their support to municipalities to de-

velop IDPs that reflect intergovernmental planning and

spatial convergence and improve the quality of life of

their residents.

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2.2.

2 S

erv

ice

De

live

ry Im

pro

vem

en

t P

lan

Ma

in S

erv

ice

Be

ne

fici

ari

es

Cu

rre

nt/

Act

ua

l st

an

da

rd o

f S

erv

ice

De

sire

d s

tan

da

rd o

f se

rvic

eA

ctu

al a

chie

vem

en

t

Sup

port

mun

ici-

palit

ies

to im

ple-

men

t th

e M

IG

prog

ram

me

and

impr

ove

expe

ndi-

ture

Mun

icip

aliti

es

Qua

rter

ly r

epor

ts in

the

pr

escr

ibed

for

mat

as

per

the

Div

isio

n of

Rev

enue

Act

(D

oRA

).(M

unic

ipal

ities

are

no

t re

port

ing

accu

rate

ly a

nd

timeo

usly

)

All

MIG

rec

eivi

ng M

unic

i-pa

litie

s re

port

on

requ

ired

repo

rtin

g te

mpl

ate

(DoR

A)

on tim

e an

d ac

cura

tely

All

MIG

rec

eivi

ng m

unic

ipal

ities

rep

ort on

req

uire

d re

port

ing

tem

-pl

ate

(DoR

A)

on tim

e an

d ac

cura

tely

. Whe

re m

unic

ipal

ities

fai

led

to s

ubm

it re

port

s th

e pr

ovin

ce (

in ter

ms

of the

rol

e of

pro

vinc

es

as o

utlin

ed in

the

MIG

fra

mew

ork)

sup

port

ed the

mun

icip

aliti

es

ensu

ring

that

bot

h fin

anci

al a

nd n

on-fi

nanc

ial p

erfo

rman

ce in

for-

mat

ion

are

repo

rted

on

in s

ubse

quen

t m

onth

s.

Impr

ove

expe

ndi-

ture

on

the

MIG

Mun

icip

aliti

esM

onth

ly e

xpen

ditu

re r

epor

ts

as p

er p

resc

ribed

for

mat

(D

oRA

)

Mun

icip

aliti

es n

ot r

epor

ting

accu

rate

ly a

nd tim

eous

ly

All

MIG

rec

eivi

ng M

unic

i-pa

litie

s re

port

on

requ

ired

repo

rtin

g te

mpl

ate

(DoR

A)

on tim

e an

d ac

cura

tely

All

MIG

rec

eivi

ng m

unic

ipal

ities

rep

ort on

req

uire

d re

port

ing

tem

plat

e (D

oRA

) on

tim

e an

d ac

cura

tely

. Whe

re m

unic

ipal

ities

fai

led

to s

ubm

it re

port

s th

e pr

ovin

ce (

in ter

ms

of the

rol

e of

pro

vinc

es a

s ou

tline

d in

th

e M

IG fra

mew

ork)

sup

port

ed the

mun

icip

aliti

es e

nsur

ing

that

bot

h fin

anci

al a

nd n

on-fi

nanc

ial p

erfo

rman

ce in

form

atio

n ar

e re

port

ed o

n in

sub

sequ

ent m

onth

s.

Mun

icip

aliti

es•

Prov

isio

ns o

f th

e G

rant

en

acte

d th

roug

h th

e D

oRA

• M

IG a

lloca

tions

Gaz

ett-

ed o

ver

Med

ium

Ter

m

Expe

nditu

re F

ram

ewor

k (M

TEF)

• Q

uart

erly

tra

nsfe

rs m

ade

acco

rdin

g to

pay

men

t sc

hedu

leN

on-fi

nanc

ial p

rogr

ess

not

rele

ased

reg

ular

ly to

stak

e-ho

lder

s an

d se

ctor

s

• M

IG a

lloca

tions

Gaz

ette

d•

Tran

sfer

s m

ade

acco

rdin

g to

pay

men

t sc

hedu

le a

nd

non-

finan

cial

pro

gres

sQ

uart

erly

non

-fina

ncia

l re

port

rel

ease

d on

DC

oG

web

site

and

dat

a pr

ovid

ed

to s

ecto

rs

• Th

e 201

4/1

5 M

IG a

lloca

tions

wer

e ga

zetted

by

the

Nat

iona

l Tr

easu

ry in

a G

over

nmen

t no

tice

of 9

May

201

4.

• Th

is fol

low

ed a

pro

cess

of co

nsul

tatio

n w

ith m

unic

ipal

ities

and

pr

ovin

ces

on the

201

4/1

5 M

IG p

aym

ent sc

hedu

le a

s re

quire

d in

te

rms

of s

ectio

n 23(c

) of

the

201

4 D

ivis

ion

of R

even

ue B

ill.

• A

ll th

e M

IG tra

nsfe

rs for

201

4/1

5 w

ere

mad

e ac

cord

ing

to

paym

ent sc

hedu

le a

nd a

men

ded

paym

ent sc

hedu

le p

roce

sses

ap

prov

ed b

y th

e N

atio

nal T

reas

ury

in ter

ms

of the

201

4 D

ivis

ion

of R

even

ue A

ct.

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Ma

in S

erv

ice

Be

ne

fici

ari

es

Cu

rre

nt/

Act

ua

l st

an

da

rd o

f S

erv

ice

De

sire

d s

tan

da

rd o

f se

rvic

eA

ctu

al a

chie

vem

en

t

Impr

ove

expe

ndi-

ture

on

the

MIG

• A

nnua

l DoR

A w

orks

hops

• A

nnua

l allo

catio

n le

tter

s to

MIG

mun

icip

aliti

es

• M

IG p

olic

y an

d D

oRA

fr

amew

ork

• In

dust

ry g

uide

on

unit

cost

gui

de•

MIG

wor

ksho

ps a

nd

mee

tings

with

pro

vinc

es

and

mun

icip

aliti

es

• A

nnua

l DoR

A w

orks

hops

• Q

uart

erly

MIG

wor

ksho

p w

ith P

rovi

nces

• A

nnua

l allo

catio

n le

tter

s to

MIG

mun

icip

aliti

es

annu

ally

• M

IG D

oRA

fra

mew

ork

• U

pdat

e of

the

Indu

stry

gu

ide

on u

nit co

st

• M

IG q

uart

erly

new

slet

ter

MIG

;•

wor

ksho

ps a

nd m

eetin

gs

• Th

e D

epar

tmen

t he

ld M

IG w

orks

hops

with

Pro

vinc

es a

nd s

ecto

r de

part

men

ts in

Aug

ust 201

4 a

nd M

arch

201

5•

Dis

tric

t w

ide

plan

ning

ses

sion

s (lo

cal m

unic

ipal

ities

incl

uded

) w

ith p

rovi

nces

and

sec

tor

depa

rtm

ents

hel

d in

Mar

ch –

Apr

il 201

4 a

nd O

ctob

er –

Dec

embe

r 201

4 to

better

info

rm the

util

isa-

tion

of 2

014/1

5 a

nd 2

015/1

6 a

lloca

tions

res

pect

ivel

y.

• Th

e 201

5/1

6 M

IG a

nnua

l allo

catio

n le

tter

s w

ere

not se

nt to

mu-

nici

palit

ies

to in

form

the

ir bu

dget

pro

cess

es a

s th

e B

ill h

ad n

ot

been

ena

cted

by

29 M

ay 2

015.

• Th

e 201

5/1

6 M

IG D

oRA

fra

mew

ork

was

dev

elop

ed w

ith in

puts

fr

om s

ecto

r de

part

men

ts res

pons

ible

for

MIG

and

pro

vinc

ial

CO

GH

STA

s.

• Th

e D

epar

tmen

t pr

ovid

ed the

Nat

iona

l Tre

asur

y w

ith in

put to

th

e M

IG D

oRA

fra

mew

ork

in D

ecem

ber

201

5 w

hich

was

pub

-lis

hed

in the

Div

isio

n of

Rev

enue

Bill

, 201

5.

• Sub

mit

mon

thly

exp

en-

ditu

re r

epor

t to

Nat

iona

l Tr

easu

ry b

y th

e 20th

of

ever

y m

onth

• Li

mite

d qu

arte

rly p

er-

form

ance

info

rmat

ion

rece

ived

(in

corr

ect fo

rmat

an

d in

adeq

uate

qua

lity)

fr

om m

unic

ipal

ities

• Li

mite

d an

nual

per

-fo

rman

ce in

form

atio

n re

ceiv

ed (

inco

rrec

t fo

rmat

an

d in

adeq

uate

qua

lity)

fr

om m

unic

ipal

ities

• A

ccur

ate

and

timeo

us

mon

thly

rep

ortin

g by

m

unic

ipal

ities

• A

ccur

ate

and

timeo

us

quar

terly

rep

ortin

g (4

5th

da

y af

ter

the

quar

ter)

to

Nat

iona

l Tre

asur

y an

d Sec

tors

• Im

prov

e tim

eous

rec

eipt

of

ann

ual p

erfo

rman

ce

repo

rt fro

m m

unic

ipal

ities

to

impr

ove

on q

ualit

y of

an

nual

per

form

ance

re-

port

sub

mitt

ed to

Nat

iona

l Tr

easu

ry b

y D

CoG

• Th

e D

epar

tmen

t su

bmitt

ed m

onth

ly e

xpen

ditu

re rep

orts

to

trea

sury

by

the

15th

of ev

ery

mon

th a

nd a

n an

nual

rep

ort to

N

atio

nal T

reas

ury

• Im

prov

emen

ts a

re b

eing

mad

e on

rep

ortin

g pr

oces

ses

to g

en-

erat

e qu

arte

rly rep

orts

to

incl

ude

non-

finan

cial

info

rmat

ion.

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2.2.3 Organizational environment

The operationalisation of the Back to Basics approach

within the Department of Cooperative Governance

(DCoG) requires some fundamental changes in the

way that DCoG functions to create a more responsive,

service orientated local government that meets the ba-

sic needs of the people. Back to Basics is premised on

a more integrated concept of how the three spheres

of government work, which requires a more hands-

on, interventionist approach to service delivery issues

confronting Local Government. The Back to Basics ap-

proach requires that DCOG reviews the role and struc-

ture of the Department and optimally configures itself to

deliver on its mandate.

The Department is currently in the process of re-organ-

ising the functions within the organisational structure to

respond to the Back to Basics approach.

2.2.4 Key Policy Developments and Legislative Changes

The decision to develop an Integrated Urban Develop-

ment Framework (IUDF) is informed by several factors,

for example the 6th World Urban Forum recommen-

dations on the development of national urban policies,

the challenges raised by the National Development Plan

and the Census 2011 outcomes that indicated signifi-

cant population growth in the urban areas.

Furthermore, during the 14 February 2013 State of the

Nation Address (SONA), the President emphasized the

need for an IUDF as one of the key tools for implement-

ing the National Development Plan (NDP) and also to

support municipalities to manage urbanisation.

The objective of the IUDF is to provide an interdepart-

mental and intergovernmental approach to attain inte-

grated urban development. It is a policy process and

a framework to understand why urban divides remain

stubbornly in place, with an eye to promoting effective

instruments to change this legacy, and promote resil-

ient and inclusive urban settlements.

The IUDF aims to among others:

§ Provide a framework that will guide all stakeholders

in government, civil society and the private sector to

participate in creating the “urban future we want”;

§ Identify policy priorities and interventions to ensure

that all levels of government and components of the

state contribute to the progressive integration of ur-

ban development investments in order to realise the

urban dividend;

§ Propose interventions to overcome entrenched

apartheid spatial patterns and also strengthen urban

and rural linkages;

§ Identify sector-specific policies and possible revised

regulatory arrangements to facilitate more resilient

and inclusive patterns of urban development;

§ Propose methods to improve performance of exist-

ing financial instruments to accelerate infrastructure

provisioning and integrated service delivery;

§ Mobilise new sources of private sector investment

and international funds for urban development; and

§ Contribute to harmonising existing legal and institu-

tional frameworks, and contribute to public dialogue

and the unlocking of citizen energies for developing

their communities and local environments.

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2.3 Strategic Outcome Orientated Goals

In 2010 government introduced its approach to achieve

results by identifying twelve (12) Outcomes. Each Min-

istry and Department is responsible for a specific out-

come through a performance agreement that became

known as a Delivery Agreement. The Minister for Coop-

erative Governance and Traditional Affairs is responsible

for the Delivery Agreement on Outcome 9: A respon-

sive, accountable, effective and efficient local govern-

ment system.

To achieve the vision of an integrated, responsive and

effective system of Cooperative Governance, the DCoG

has identified the following seven (7) strategic goals:

§ Strategic Goal 1: Develop policies and legislation

to lead the building of capable, developmental and

economically viable local governance institutions

(municipal and traditional councils);

§ Strategic Goal 2: Deepen participatory democra-

cy through common standards and practices of ac-

countability and good governance.

§ Strategic Goal 3: Support planning and coordi-

nation efforts across all spheres of government in

partnership with all sector departments, local gov-

ernment agencies, traditional institutions and organs

of civil society.

§ Strategic Goal 4: Foster sustainable infrastructure

development and maintenance to ensure basic ser-

vices delivery and local economic development.

§ Strategic Goal 5: Engage and support institutions

of traditional affairs and leadership to transform so-

ciety and play a developmental role, in partnership

with government, and in line with the Constitution

towards the realization of the National Development

Plan.

§ Strategic Goal 6: Monitor and Evaluate the per-

formance of provincial departments of local govern-

ment and traditional councils.

§ Strategic Goal 7: Strengthen the capacity of the

department to deliver on its mandate.

These strategic goals are defined for the period 2011-

15, given the strategic focus on delivering the outputs of

the Delivery Agreement on Outcome 9. These goals are

therefore directly in line with the outputs of the Delivery

Agreement, and replace the strategic priorities set in the

strategic plan 2009-14 which were:

i) Contribute to building the Developmental State in

National, Provincial and Local Government that is ef-

ficient, effective and responsive;

ii) Strengthen Accountability and Clean Government;

iii) Accelerate Service Delivery and support the vulner-

able;

iv) Foster Development Partnerships, Social Cohesion

and community mobilisation; and

v) Strengthen the capacity and capability of the depart-

ment to deliver on its mandate.

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2.4 Performance Information by Programme

Purpose

The purpose of administration is to provide for the man-

agement, leadership and administration of the depart-

ment. This programme includes the Office of the Direc-

tor-General (DG); Office of the Chief Operating Officer

(COO); Corporate and Financial Services.

Objectives and measures

i) Improve information reliability and availability to sup-

port the strategic goals of the department by 2019;

ii) Roll-out and monitor the implementation of the local

government performance management system by

31 March 2016; and

iii) Develop and implement an integrated monitoring

and evaluation system for provincial departments of

local government and municipalities by 2019

Service delivery objectives and indicators

HUMAN CAPITAL MANAGEMENTThe sub-programme Human Capital Management is

mainly responsible for overall workforce planning and

management to ensure that CoGTA cultivates a di-

verse, competent and well managed staff complement

capable of and committed to the delivery of high quality

services. Key to this aim is to ensure balance by the

recruitment of the right quality and quantity of staff, and

their optimum utilisation, resulting in a multi skilled, rep-

resentative and flexible work force.

The sub-programme provided support throughout the

Department by facilitating the development of job pro-

files and conducting job evaluations in line with the Pub-

2.4.1 Programme 1: Administration

lic Service Act requirements. Several employee wellness

sessions, such as financial wellness, ear and eye tests,

HIV and AIDS were organised by the sub-programme

including the introduction of a partnership with the

South African National Blood Services (SANBS). Sev-

enty (70) CoGTA employees participated in the Nelson

Mandela (Unite4Mandela) sport and cultural day on

24 November 2014 organised by the Department of

Sports and Recreation, the Department of Arts and Cul-

ture, Tom Jenkins and Athletic Gauteng North.

Seventy one vacant, funded posts were filled with the

support of the various line function managers.

All SMS members disclosed their financial interests be-

fore the due date and the information was submitted to

the Public Services Commission on time.

A number of information sessions were held with staff

members to communicate the available service benefits

and to ensure a better understanding of them.

During the 2014/15 Financial Year, the Directorate:

Human Resource Development implemented training

programmes namely, Computer Packages (basic, inter-

mediate and advance), Basic Project Management, Evi-

dence Based Policy Implementation, Sexual Harassment

Countermeasures, Finance for non-Finance Managers,

Policy Development, Financial Management Work-

shops and a workshop on People with Disabilities. The

Directorate also conducted orientation programmes for

newly appointed employees and Compulsory Induction

Programmes (CIP) for both level 1 to 5 and 6 to 12 staff

members. A total number of 337 staff members were

trained in the above mentioned interventions during the

2014/15 financial year. The Department awarded 39

staff members with bursaries to study towards quali-

fications in line with the Departmental Strategic Plan.

The Directorate further facilitated the achievement of

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equity in the Department by ensuring 50 percent rep-

resentation of women at senior management level and

improved representation of people with disabilities to

1.2 %. The programme institutionalised the 8 Principles

Action Plan for Promoting Women Empowerment and

Gender Equality. To encourage meritorious achieve-

ment, performance rewards were granted to all quali-

fying staff members in the Department during the year

under review. Quarterly performance management and

development sessions were conducted to ensure that

individual performance is linked to the broader overall

objectives of the Department.

CORPORATE PLANNING AND GOVERNANCEThe sub-programme provided strategic management

support, and directed the system of corporate gover-

nance with a view to achieving the long term strategic

goals of the department. In this connection, the sub-pro-

gramme facilitated the alignment of departmental plans

to Government objectives as outlined in the National

Development Plan and Medium Term Strategic Frame-

work; the development of the five year Strategic Plan

2015-19 and Annual Performance Plan 2015/16; the de-

velopment of the monthly and quarterly performance

reports, as well as the Annual Report 2013/14; coordi-

nated the departmental quarterly performance reviews,

and provided a gap analysis of performance as an ear-

ly warning ,mechanism with the intention of enriching

management decision making on the future direction

of projects. Support was also provided to branches to

ensure that the performance targets and indicators are

well defined, and adhere to the Smart Criteria as out-

lined in the Framework for Managing programme Per-

formance Information, and the Framework for Strategic

Planning and the Annual Performance Plan by National

Treasury.

MONITORING AND EVALUATIONDuring the period under review, the sub-programme in

collaboration with the Department of Performance Mon-

itoring and Evaluation conducted Performance Man-

agements System assessments in North West prov-

ince using the Local Government Improvement Model

(LGIMM) moderation process. Feedback was given to

all municipalities who participated in this process and

support plans for struggling municipalities were de-

veloped. Municipal self-assessments were conducted

by 30 municipalities in Gauteng, Eastern Cape, North

West, Limpopo, Free State and Mpumalanga provinces.

All 30 municipalities were trained on how to use the

Local Government Management Information (LGMIM)

tool.

The development of the 2014 – 2019 Medium Term

Strategic Framework (MTSF) Chapter on Outcome 9

was a result of an extensive consultation process un-

dertaken by CoGTA and the Department of Planning,

Monitoring and Evaluation (DPME) and various rele-

vant sector departments such as National Treasury. The

main purpose of the consultations was to confirm the

actions, milestones, targets, roles and responsibilities of

key role players towards implementation of the MTSF.

The MTSF Chapter on Outcome 9 was approved by

Cabinet on 23 July 2014. Two progress reports, cov-

ering the periods April – September 2014 and October

– December 2014, on the implementation of the MTSF

Chapter were presented at the Technical Implementa-

tion Forums, Ministerial Implementation Forums and

Cabinet meetings.

INTERNAL AUDIT AND RISK MANAGEMENTDuring the 2014/15 financial year Internal Audit devel-

oped a risk based Internal Audit Plan which was adopted

and approved by the Audit Committee. The Internal Au-

dit Unit had serious capacity constraints during the pe-

riod under review which impacted on the achievement

of the operational plan. Nevertheless the Unit conduct-

ed a number of internal audits and ad hoc assignments

and provided recommendations for improvement to the

Department. The Unit also played a major role in facili-

tating the MPAT process to ensure that the Department

complies with the key performance standards set by

the Department of Performance Monitoring and Evalu-

ation. Internal Audit also assisted the Department with

the verification of irregular expenditure, to ensure that

there is compliance with Supply Chain Management

policies and other relevant legislations and prescripts

and to ensure that irregular expenditure is fully dis-

closed in the Annual Financial Statements. Furthermore

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36

the Unit conducted site visits on the Community Work

Programme in all provinces to provide management

with reasonable assurance that the internal controls put

in place are working as intended.

Risk management is a continuous, proactive and sys-

tematic process, undertaken by a department’s Exec-

utive Authority, Accounting Officer, Management and

other personnel. This process is applied in strategic

planning and across the department, and is designed

to identify potential risks that may affect the depart-

ment. Risks identified are managed and monitored to

be within its risk tolerance, and to provide reasonable

assurance regarding the achievement of department

objectives.

The department has a risk management policy and

strategy in place which has been approved by the Ac-

counting Officer and is reviewed on a regular basis.

In line with the departmental risk management strate-

gy, annual risk assessments are conducted both at a

strategic and operational level. The assessments are

conducted in line with the strategic objectives of the

department. Management further identifies new and/

or emerging risks on a quarterly basis, and develops

mitigation measures for managing such risks.

The business continuity framework and strategy were

developed and approved during this period. Fraud risks

were also identified and monitored. Ethics and fraud

prevention awareness programmes were implemented

in accordance with the awareness plan for 2014/15.

INTERNATIONAL AND DONOR RELATIONSThe Department participated in strategic multilater-

al and continental forums such as the African Union

Specialised Technical Committee (STC) on Decentrali-

sation, Public Administration and Urban Development

and the Commonwealth Local Government Forum,

and other learning exchange platforms on disaster

management in furtherance of South Africa’s foreign

policy objectives of contributing towards the African

development process and maintaining strategic re-

lations with countries of the North. In addition, the

Department continued to support the decentralization

and local government establishment processes of

South Africa’s strategic partners, such as the Demo-

cratic Republic of Congo (DRC) and the State of Pales-

tine. In this regard, the Department hosted a learning

exchange visit by officials of the Palestine Municipal

Development Lending Fund (MLDF) in partnership

with the Development Bank of South Africa and the

Ethekwini Municipality. The Department continues to

play a key role in the implementation of the Tri-partite

Memorandum of Understanding between the DRC,

Angola and South Africa aimed at post-conflict recon-

struction and the establishment of peace and stability

in the DRC.

Important partnerships with donors and development

cooperation partners were initiated to leverage re-

sources for the implementation of key projects during

the period under review. The department signed a

Memorandum of Agreement (MOA) with the Japan

International Cooperation Agency (JICA) for funding

and technical assistance in the area of Waste Man-

agement. This support included a financial grant of

R920 000 and the short term deployment of Japa-

nese experts to assess the waste management sys-

tem of the Mahikeng Local Municipality, which served

as a pilot municipality for the implementation of the

MoA. This support on the improvement of waste man-

agement practices will be extended to other munic-

ipalities. In addition, the European Union’s Dialogue

Facility approved a financial grant of 119.840 Euro to

support Policy Dialogues on the Integrated Urban De-

velopment Framework.

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Info

rma

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SE

RV

ICE

DE

LIV

ER

Y A

CH

IEV

EM

EN

TS

Str

ate

gic

O

bje

ctiv

e

Act

ua

l A

chie

vem

en

t 2

013

/14

Pla

nn

ed

Ta

rge

t 2

014

/15

Ind

ica

tors

A

ctu

al A

chie

vem

en

t 2

014

/15

De

via

tio

n

fro

m A

ctu

al

Ach

ieve

me

nt

Co

mm

en

t o

n

De

via

tio

ns

Impr

ove

avai

labi

lity

and

relia

bilit

y of

in

form

atio

n to

su

ppor

t th

e st

rate

gic

goal

s of

the

dep

art-

men

t.

97%

ava

ilabi

lity

of c

ritic

al s

ys-

tem

s an

d se

rvic

es

achi

eved

by

Mar

ch

201

4

Har

dwar

e up

grad

-ed

and

net

wor

k lin

ks in

stal

led

to

ensu

re r

edun

danc

y an

d ba

ckup

for

hi

gh a

vaila

bilit

y

Man

age

and

cons

olid

ated

in

form

atio

n in

to a

sin

gle

data

base

ICT

infr

astr

uc-

ture

and

sys

-te

ms

inte

grat

ed

by tar

get da

te

Not

ach

ieve

d.

A c

ompr

ehen

sive

ass

essm

ent w

as c

ondu

cted

in

the

1st

qua

rter

on

all a

pplic

atio

ns, s

yste

ms

and

data

base

arc

hite

ctur

es n

eede

d fo

r th

e de

sign

pha

se o

f th

e co

nsol

idat

ed p

latfor

m. T

he

asse

ssm

ent w

ill b

e us

ed to

info

rm the

rec

on-

figur

ed p

roje

ct.

The

initi

ativ

e to

con

-so

lidat

e th

e de

part

-m

enta

l inf

orm

atio

n in

to a

sin

gle

data

base

ha

s no

t be

en a

chie

ved

and

has

been

hal

ted

in o

rder

to

inco

rpor

ate

data

nee

ds o

f th

e B

ack

to B

asic

s C

ampa

ign

whi

ch a

mon

gst ot

hers

re

quire

s m

onth

ly re-

port

ing.

This

pro

ject

has

bee

n re

confi

gure

d to

cat

er

for

both

inte

rnal

and

ex

tern

al in

form

atio

n.

Rol

l-ou

t an

d m

onito

r th

e im

plem

enta

-tio

n of

the

loca

l go

vern

men

t pe

rfor

man

ce

man

agem

ent

syst

em b

y 31

M

arch

201

9

Perf

orm

ance

M

anag

emen

t Sys

tem

(PM

S)

asse

ssm

ents

hav

e be

en c

ondu

cted

in

4 (

four

) pr

ov-

ince

s (F

ree

Sta

te,

(Mpu

mal

anga

, Li

mpo

po a

nd

Nor

ther

n C

ape)

Pro

vinc

es

supp

orte

d w

ith

PMS im

ple-

men

tatio

n by

31

Mar

ch 2

015

PMS im

ple-

men

tatio

n pr

o-gr

amm

e ro

lled

out to

iden

tified

pr

ovin

ces

by

targ

et d

ate

Ach

ieve

d

The

depa

rtm

ent in

col

labo

ratio

n w

ith the

D

epar

tmen

t of

Pla

nnin

g M

onito

ring

and

Eval

uatio

n (D

PME)

con

duct

ed P

erfo

rman

ce

Man

agem

ents

Sys

tem

ass

essm

ents

in N

orth

W

est pr

ovin

ce u

sing

the

Loc

al G

over

nmen

t Im

prov

emen

t M

odel

(LG

IMM

) m

oder

atio

n pr

o-ce

ss. F

eedb

ack

was

giv

en to

all m

unic

ipal

ities

w

ho p

artic

ipat

ed in

the

LG

IMM

pro

cess

and

su

ppor

t pl

ans

for

stru

gglin

g m

unic

ipal

ities

wer

e de

velo

ped. M

unic

ipal

sel

f-as

sess

men

ts w

ere

cond

ucte

d by

30 m

unic

ipal

ities

in the

fol

low

ing

prov

ince

s; G

aute

ng, E

aste

rn C

ape,

Nor

th W

est,

Lim

popo

, Fre

e Sta

te a

nd M

pum

alan

ga. A

ll 30

mun

icip

aliti

es w

ere

trai

ned

on h

ow to

use

the

Loca

l Gov

ernm

ent M

anag

emen

t In

form

atio

n (L

GM

IM)

tool

.

--

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38

Str

ate

gic

O

bje

ctiv

e

Act

ua

l A

chie

vem

en

t 2

013

/14

Pla

nn

ed

Ta

rge

t 2

014

/15

Ind

ica

tors

A

ctu

al A

chie

vem

en

t 2

014

/15

De

via

tio

n

fro

m A

ctu

al

Ach

ieve

me

nt

Co

mm

en

t o

n

De

via

tio

ns

Est

ablis

h an

d im

plem

ent

an e

valu

atio

n sy

stem

for

mu-

nici

pal s

ervi

ce

deliv

ery

Term

s of

Ref

eren

ce

wer

e de

velo

ped

and

adve

rtis

e-m

ents

pla

ced

for

the

appo

intm

ent

of

a se

rvic

e pr

ovid

er

Mon

itorin

g an

d R

epor

ting

Sys

-te

m for

Loc

al

Gov

ernm

ent

desi

gned

by

Mar

ch 2

015

Mon

itorin

g an

d re

port

ing

syst

em for

loca

l go

vern

men

t de

sign

ed b

y ta

rget

date

Not

Ach

ieve

d

Term

s of

ref

eren

ces

wer

e de

velo

ped

and

the

tend

er w

as a

dver

tised

in the

gov

ernm

ent bu

lle-

tin. D

urin

g th

e pr

oces

s of

aw

ardi

ng the

ten

der

to the

pre

ferr

ed s

ervi

ce p

rovi

der

a de

cisi

on

was

tak

en to

put th

e pr

ojec

t on

hol

d.

The

proj

ect on

the

de-

sign

of th

e M

onito

ring

and

Rep

ortin

g Sys

tem

fo

r Lo

cal G

over

nmen

t is

pu

t on

hol

d fo

r pu

rpos

-es

of co

nsid

erin

g in

for-

mat

ion

nuan

ces

as p

er

the

B2B

initi

ativ

e. T

he

proj

ect w

ill c

omm

ence

in

the

firs

t pa

rt o

f th

e ne

w fi

nanc

ial y

ear

afte

r th

e as

sess

men

t of

all

elec

tron

ic s

yste

ms

with

in the

dep

artm

ent

and

the

revi

sion

and

fin

alis

atio

n of

the

ter

ms

of ref

eren

ce

A s

ecto

r w

orks

hop

was

con

vene

d an

d th

e se

cond

dra

ft o

f th

e Lo

cal G

over

n-m

ent

Indi

cato

rs

was

dev

elop

ed a

nd

used

to

cons

ult

mun

icip

aliti

es in

8

prov

ince

s.

Inpu

ts w

ere

rece

ived

fro

m m

u-ni

cipa

litie

s th

roug

h th

e pr

ovin

ces

and

cons

olid

ated

into

th

e pr

opos

ed in

di-

cato

rs.

Loca

l Gov

ern-

men

t in

dica

-to

rs fi

naliz

ed

by M

arch

201

5

Loca

l Gov

ern-

men

t in

dica

-to

rs fi

naliz

ed

by tar

get da

te

Part

ially

ach

ieve

d

The

Dra

ft L

ocal

Gov

ernm

ent in

dica

tors

wer

e fin

alis

ed in

the

firs

t qu

arte

r an

d co

nsul

ted

on

with

all

prov

ince

s an

d m

unic

ipal

ities

. Tec

hnic

al

indi

cato

r de

scrip

tion

wer

e th

en d

one

in the

2nd

qua

rter

. Due

to

introd

uctio

n of

the

Bac

k to

Bas

ics

prog

ram

me,

the

sco

pe o

f th

e pr

ojec

t ch

ange

d. I

nste

ad, m

onth

ly r

epor

ting

indi

cato

rs

for

Bac

k to

Bas

ics

wer

e de

velo

ped

and

mun

ici-

palit

ies

are

requ

ired

to rep

ort on

the

se in

dica

-to

rs o

n a

mon

thly

bas

is a

s pr

escr

ibed

thr

ough

C

ircul

ar 4

7 o

f 201

4.

As

part

of en

surin

g th

e pr

oper

rep

ortin

g on

the

pe

rfor

man

ce o

f m

unic

-ip

aliti

es, d

raft tec

hnic

al

indi

cato

rs d

escr

iptio

ns

wer

e de

velo

ped

in c

on-

sulta

tion

with

rel

evan

t lin

e fu

nctio

n m

anag

ers.

The

mon

thly

rep

orts

on

the

Bac

k to

Bas

ics

indi

cato

rs w

ould

the

n al

so s

hape

and

info

rm

the

final

isat

ion

of c

ore

loca

l gov

ernm

ent in

di-

cato

rs w

hich

wou

ld

be reg

ulat

ed thr

ough

th

e Lo

cal G

over

n-m

ent Pl

anni

ng a

nd

Perf

orm

ance

Reg

ula-

tions

, cur

rent

ly u

nder

re

view

.

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rt B

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oG

Pe

rfo

rma

nce

Info

rma

tio

n

PR

OG

RA

MM

E 1

: SU

B P

RO

GR

AM

ME

BU

DG

ET

AN

D A

CT

UA

L E

XP

EN

DIT

UR

ETh

e ex

pend

iture

and

var

ianc

e ve

rsus

the

fina

l app

ropr

iatio

n is

pro

vide

d be

low

:

Su

b-P

rog

ram

me

Na

me

20

14/

20

152

013

/2

014

Fin

al

Ap

pro

pri

ati

on

Act

ua

l P

erf

orm

an

ce(O

ver)

Un

de

r

Exp

en

dit

ure

Fin

al

Ap

pro

pri

ati

on

Act

ua

l P

erf

orm

an

ce(O

ver)

Un

de

r E

xpe

nd

itu

re

Min

istr

y33 3

05

33 3

05

-36 7

35

36 7

35

-

Man

agem

ent

16 6

7316

668

515

686

15 7

41-5

5

Ch

ief

Op

erat

ing

Offi

cer

12 1

8111

905

276

11 8

02

11 8

02

-

Cor

por

ate

Ser

vice

s85 4

7685 3

60

116

80 6

95

80 6

415

4

Fin

anci

al S

ervi

ces

22 0

1322 0

13-

27 4

1227

030

382

Com

mu

nic

atio

n &

Lia

ison

9 3

219 3

21-

15 7

43

15 7

43

-

Legi

slat

ion

, Rev

iew

& D

raft

ing

11 1

30

11 1

30

-6 5

64

6 5

64

-

Inte

rnal

Au

dit

& R

isk

Man

agem

ent

8 6

198 6

19-

8 7

43

8 7

43

-

Offi

ce A

ccom

mod

atio

n43 3

0743 3

07-

44 4

99

44 4

99

-

Tota

l 2

42

02

52

41 6

28

397

247

879

247

49

83

81

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40

Purpose

The purpose of this programme is to manage, facilitate

and coordinate intergovernmental relations and devel-

opment planning support across government.

Objectives and measures

The programme seeks to achieve the following objec-

tives:

i) Enhance the regulatory, institutional and support

framework for Local Government across provinces

and municipalities by 2019;

ii) Review and develop policy and assess impact of in-

ternal legislation and sector legislation on Provincial

and Local Government;

iii) Facilitate and coordinate alignment of various devel-

opment planning instruments within and across the

three spheres;

iv) Deepen participatory democracy by strengthening

gender equity in local government;

v) Creation of an enabling environment for economic

development to stimulate competitive, inclusive and

sustainable economies by March 2019.

Service delivery objectives and indicators

The programme is divided into three Sub-Programmes:

INTERGOVERNMENTAL RELATIONS The Intergovernmental Relations Unit’s strategic objec-

tive was to review and develop policy, and assess the

impact of internal legislation and sector legislation on

provincial and local government. The sub-programme

in the financial year under review focused on finalis-

ing the assessment of the IGR structures at national

and provincial level, and producing a comprehensive

2.4.2 Programme 2: Policy Research and Knowledge Management

Synthesis Report. The assessments were conducted

in terms of the effective administration of the Intergov-

ernmental Relations Framework Act (2005), and the

assessment cycle is now complete. Intergovernmental

coordination is an essential element of monitoring the

implementation of Back to Basics, and the IGR struc-

tures are playing a key role in this regard.

The Unit also monitored the impact of nine S139 inter-

ventions, by holding engagement sessions with officials

and appointed Administrators in the selected munici-

palities under intervention. A consolidated Report was

then compiled detailing the root causes of the inter-

ventions in these nine (9) municipalities; the impact of

the intervention in terms of restoring good governance

and service delivery; and then a key focus on what has

worked and what has not worked in terms of the more

sustainable application of S139 interventions going for-

ward. The Back to Basics approach will also assist to

guide the management of dysfunctional municipalities

going forward.

POLICY AND RESEARCH Policy and Research Methods provides technical pol-

icy and research support to the department aimed at

improving the service delivery performance of mu-

nicipalities, fostering compliance with legislation, and

conducting research on key challenges facing local

government. Research alerts, highlighting events in the

municipal and provincial environment regarding service

delivery, local economic development and public par-

ticipation matters are also provided to the department.

Profiles of municipalities are developed and updated in

support of political visits.

URBAN DEVELOPMENT The Urban Development Unit’s strategic objective is

to provide an interdepartmental and inter-governmen-

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tal approach to attain integrated urban development.

During this financial year, the draft Integrated Urban

Development Framework was approved by Cabinet for

public consultation. The public consultation process

started in October 2014 and will be completed in June

2015. Consultation sessions were held in various prov-

inces. Lever specific sessions were held in conjunction

with several partners. The Draft was also presented at

various structures and meetings, to encourage inputs

and recommendations for improvement.

Through the support of the European Union Dialogue

Facility, the draft document has also been peer reviewed

to, among others, benchmark the principles outlined in

the Draft IUDF with international practices, assess syn-

ergy of the various levers and priorities as well as to pro-

pose recommendations for the implementation plan.

The Department further partnered with the Deutsche

Gesellschaft für Internationale Zusammenarbeit (GIZ) to

review the draft on the inclusion of vulnerable groups.

The reviews and consultations will be finalised in June

2015, and the recommendations incorporated into the

revised document.

DEVELOPMENT PLANNING The Development Planning Unit’s strategic objectives

are to facilitate and coordinate alignment of various de-

velopment planning instruments within and strengthen

intergovernmental planning across the three spheres of

government by 2019. The sub-programme in this finan-

cial year supported 4 provinces to develop IDP support

plans by 31 March 2015. In addition, 25 municipalities

were supported through training and development of

Geographic Information Systems (GIS).

LOCAL ECONOMIC DEVELOPMENT A shortened, edited and more precise National LED

Framework 2014-2019 was completed. The National

LED Strategic Implementation and Action Plan (SIAP)

has been completed which will serve as a national

action plan that spells out cross-sector plans on LED,

indicators and targets, how the plans are to be imple-

mented, roles of different role-players and the resourc-

es required, as well as monitoring and evaluation frame-

works for the next five years. The activities under the

SIAP are also directly linked to the Key Focus Areas of

the Back to Basics Programme. It sets out the specific

activities to be undertaken by the various role players

at different levels with indicators, milestones or targets

as well as timeframes including municipalities, national

and provincial government, private sector, academia,

civil society, non-governmental organisations and state

owned agencies.

Through interdepartmental collaborations the Unit in

partnership with the GIZ has been able to develop a

decision making tool to assist municipalities to make an

informed decision on whether a Municipal Entity is the

most appropriate mechanism for implementing a spe-

cific service delivery or economic development func-

tion. Fourteen (14) municipalities have participated in

the LED capacity building programme offered through

the University of Johannesburg in partnership with the

Department of Trade and Industry. The programme

focuses on Municipal LED Maturity Assessment and

training in response to the recommendations of the

assessment. These municipalities include Siyathemba;

John Taolo; Alfred Nzo,Tswelopele; Rustenburg; Kge-

tleng; Moopgophong; Waterberg; Fetakgomo; Gariep;

Westonaria; Koukamma; Randfontein and Umgungun-

dlovu.

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42

SE

RV

ICE

DE

LIV

ER

Y A

CH

IEV

EM

EN

TS

Str

ate

gic

O

bje

ctiv

e

Act

ua

l Ach

ieve

me

nt

20

13/

14

Pla

nn

ed

Ta

rge

t 2

014

/15

Ind

ica

tors

A

ctu

al A

chie

vem

en

t 2

014

/15

De

via

tio

n

fro

m A

ctu

al

Ach

ieve

me

nt

Co

mm

en

t o

n

De

via

tio

ns

Rev

iew

and

dev

elop

po

licy

and

asse

ss

impa

ct o

f in

tern

al

legi

slat

ion

and

sect

or le

gisl

atio

n on

Pr

ovin

cial

and

LG

The

Ass

essm

ent

Phas

e w

as

not

final

ised

and

the

Rep

ort is

st

ill u

nder

dev

elop

men

t

Rep

ort on

the

as

sess

men

t of

N

atio

nal a

nd P

ro-

vinc

ial I

GR

str

uc-

ture

s pr

oduc

ed

by 3

1 M

arch

201

5

Rep

ort on

the

as

sess

men

t of

N

atio

nal a

nd P

ro-

vinc

ial I

GR

str

uc-

ture

s pr

oduc

ed

by tar

get da

te

Ach

ieve

d

Ass

essm

ent

Fram

ewor

k de

vel-

oped

, Int

ervi

ews

and

ques

tion-

naire

s w

ere

com

plet

ed, M

inI

Rep

orts

on

stru

ctur

es p

repa

red

and

cons

olid

ated

into

Fin

al S

yn-

thes

is R

epor

t on

fun

ctio

nalit

y in

te

rms

of the

IGR

FA.

--

A r

epor

t on

the

im

pact

of S13

9

inte

rven

tions

co

mpi

led

by 3

1

Mar

ch 2

015.

Impa

ct o

f Sec

tion

139 in

terv

entio

ns

in m

unic

ipal

ities

as

sess

ed b

y ta

rget

dat

e

Ach

ieve

d

A c

ompr

ehen

sive

rep

ort on

the

im

pact

of se

ctio

n 13

9 in

terv

en-

tions

, and

less

ons

lear

ned,

in

9 m

unic

ipal

ities

, pro

duce

d by

M

arch

201

5.

--

Enh

ance

the

reg

ula-

tory

, ins

titut

iona

l and

su

ppor

t fr

amew

ork

for

LG a

cros

s pr

ov-

ince

s an

d m

unic

ipal

-iti

es b

y 201

9

4 R

esea

rch

pape

rs w

ere

deve

l-op

ed. T

he t

opic

s w

ere:

• Ser

vice

Del

iver

y Pr

otes

ts

(als

o up

date

d in

the

4th

qu

arte

r fo

r th

e D

M’s

sem

i-na

r)•

Tren

ds o

n co

mpl

ianc

e an

d le

sson

s on

goo

d go

vern

ance

fr

om t

he a

udit

outc

omes

of

LG 2

011/

12•

Mun

icip

al F

inan

cial

Man

age-

men

t an

d A

udit

perf

orm

ance

ou

tcom

es•

Prog

ress

with

ser

vice

del

iver

y

Res

earc

h on

id

entifi

ed s

trat

e-gi

c ar

eas

con-

duct

ed

Res

earc

h on

id

entifi

ed s

trat

e-gi

c ar

eas

con-

duct

ed

Ach

ieve

d

4 R

esea

rch

pape

rs w

ere

deve

l-op

ed. T

he top

ics

wer

e:

• Sta

tus

quo

in D

istr

ict M

unic

-ip

aliti

es•

Profi

les

of 4

4 D

istr

ict M

unic

-ip

aliti

es•

Rep

ort on

opt

ions

/ s

trat

egie

s to

stren

gthe

n D

istr

ict M

unic

i-pa

litie

s an

d•

Rep

ort on

the

impl

icat

ions

of

pro

pose

d re

form

s to

st

reng

then

Dis

tric

ts.

--

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43

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rt B

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Pe

rfo

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nce

Info

rma

tio

n

Str

ate

gic

O

bje

ctiv

e

Act

ua

l Ach

ieve

me

nt

20

13/

14

Pla

nn

ed

Ta

rge

t 2

014

/15

Ind

ica

tors

A

ctu

al A

chie

vem

en

t 2

014

/15

De

via

tio

n

fro

m A

ctu

al

Ach

ieve

me

nt

Co

mm

en

t o

n

De

via

tio

ns

Faci

litat

e an

d co

or-

dina

te a

lignm

ent

of

vario

us d

evel

opm

ent

plan

ning

inst

rum

ents

w

ithin

and

acr

oss

the

thre

e sp

here

s

Str

ateg

ic le

vers

of

the

draf

t

IUD

F ha

ve b

een

final

ised

. The

im

plem

enta

tion

fram

ewor

k is

in t

he p

roce

ss o

f be

ing

final

ised

.

IUD

F Im

ple-

men

tatio

n Pl

an

deve

lope

d by

31

Mar

ch 2

015

Inte

grat

ed U

rban

D

evel

opm

ent

Fram

ewor

k (I

UD

F)

Impl

emen

tatio

n Pl

an d

evel

oped

by

targ

et d

ate

Part

ially

Ach

ieve

d

The

draf

t IU

DF

was

app

rove

d by

Cab

inet

in S

epte

mbe

r 201

4

for

publ

ic c

onsu

ltatio

n.

Con

sulta

tion

proc

ess

star

ted

in O

ctob

er 2

014 a

nd w

ill b

e co

mpl

eted

in J

une

201

5.

The

draf

t IU

DF

and

Impl

emen

-ta

tion

Plan

not

ye

t re

vise

d fo

r ap

prov

al b

y C

abin

et.

The

cons

ulta

tion

fram

ewor

k w

as

revi

sed

due

to the

nu

mbe

r of

ses

sion

s to

be

con

clud

ed a

s pe

r th

e st

akeh

olde

r st

rate

-gy

and

req

uest

s from

va

rious

sta

keho

lder

s.

New

pro

ject

4 p

rovi

nces

sup

-po

rted

to

deve

lop

IDP

supp

ort pl

ans

by 3

1 M

arch

201

5

Num

ber

of p

rov-

ince

s su

ppor

ted

in

the

deve

lopm

ent

of ID

P su

ppor

t pl

ans

by tar

get

date

Ach

ieve

d

4 p

rovi

nces

wer

e su

ppor

ted

to

deve

lop

IDP

supp

ort pl

ans

by

31 M

arch

201

5

--

Cre

atio

n O

f A

n En

-ab

ling

Envi

ronm

ent

For

Econ

omic

Dev

el-

opm

ent

To S

timul

ate

Com

petit

ive,

Incl

u-si

ve a

nd S

usta

inab

le

Econ

omie

s

The

fram

ewor

k do

cum

ent ha

s be

en c

oncl

uded

as

the

basi

s fo

r a

com

preh

ensi

ve s

trat

egy

for

the

coun

try

Dur

in t

he f

ourt

h qu

arte

r TO

Rs

for

the

stra

tegy

wer

e de

vel-

oped

Nat

iona

l LED

Str

ateg

ic Im

-pl

emen

tatio

n an

d A

ctio

n Pl

an

deve

lope

d an

d im

plem

ente

d

Nat

iona

l LED

Str

a-te

gic

Impl

emen

-ta

tion

and

Act

ion

Plan

dev

elop

ed

and

impl

emen

ted

by tar

get da

te

Part

ially

Ach

ieve

d

A c

ompl

eted

dra

ft S

trat

egic

Im

plem

enta

tion

and

Act

ion

Plan

fo

r N

atio

nal a

nd P

rovi

ncia

l Gov

-er

nmen

t, N

GO

s, C

ivil

Soc

iety

, B

usin

ess

and

Aca

dem

ia h

as

been

com

plet

ed.

Sta

keho

lder

con

sulta

tions

are

pl

anne

d in

pro

vinc

es o

n th

e dr

aft do

cum

ent fo

r co

nsol

ida-

tion

and

subm

issi

on to

Min

Mec

Del

ays

in p

ro-

cure

men

t af

fect

-ed

the

tar

gets

of

the

proj

ect.

The

proj

ect w

ill b

e co

nclu

ded

durin

g qu

arte

r 1 o

f th

e 201

5/1

6 fi

nanc

ial y

ear

Priv

ate

sect

or

colla

bora

tive

part

ners

hips

fac

il-ita

ted

to rol

l-ou

t su

ppor

t pl

ans

in

mun

icip

aliti

es

Col

labo

rativ

e Pa

rt-

ners

hips

fac

ilita

t-ed

bet

wee

n th

e Pr

ivat

e Sec

tor

and

Loca

l Gov

ernm

ent

Ach

ieve

d

Cat

alyt

ic B

usin

ess

Vent

ures

w

ere

faci

litat

ed -

with

Ang

lo

Am

eric

an, I

mpa

la P

latin

um, I

DC

an

d D

BS

A t

o su

ppor

t th

e B

usi-

ness

Dev

elop

men

t Pr

ogra

mm

e fo

r th

e id

entifi

ed m

unic

ipal

ities

.

--

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44

PR

OG

RA

MM

E 2

: SU

B P

RO

GR

AM

ME

BU

DG

ET A

ND

AC

TU

AL

EX

PE

ND

ITU

RE

The

expe

nditu

re a

nd v

aria

nce

vers

us t

he fi

nal a

ppro

pria

tion

is p

rovi

ded

belo

w:

Su

b-P

rog

ram

me

Na

me

20

14/

20

152

013

/2

014

Fin

al

Ap

pro

pri

ati

on

Act

ua

l P

erf

orm

an

ce

(Ove

r) U

nd

er

Exp

en

dit

ure

Fin

al

Ap

pro

pri

ati

on

Act

ua

l P

erf

orm

an

ce

(Ove

r) U

nd

er

Exp

en

dit

ure

Man

agem

ent:

Res

earc

h a

nd

Pol

icy

4 1

513 4

04

747

3 0

38

3 0

38

-

Polic

y M

eth

ods

and

Res

earc

h7 7

92

6 7

59

1 0

33

5 8

575 8

3720

Kn

owle

dge

an

d In

form

atio

n M

anag

emen

t8 3

08

8 3

08

-7 2

89

6 5

7871

1

Tota

l 2

0 2

5118

471

1 7

80

16 1

84

15 4

53

731

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2.4.3 Programme 3: Governance and Intergovernmental Relations

Purpose

Manage, promote and facilitate an effective system

of intergovernmental fiscal relations in support of

municipalities, to deliver sustainable infrastructure for

increased access to basic services, improve audit out-

comes, and implement the Municipal Property Rates

Act.

Objectives and measures

The programme seeks to achieve the following ob-

jectives:

i) Manage the implementation of the Municipal Prop-

erty Rates Act (MPRA) by implementing the regu-

latory framework, monitoring and supporting mu-

nicipalities regarding compliance with the MPRA by

March 2019;

ii) Implement initiatives to improve financial sustain-

ability, revenue management and audit outcomes

in Local Government;

iii) Strengthen the capacity of municipalities to deliver

sustainable infrastructure and increase access to

basic services, including provision of free basic ser-

vices to the poor by 31 March 2019; and

iv) Effectively manage the Municipal Infrastructure

Grant (MIG) programme by March 2019.

Service delivery objectives and indicators

MUNICIPAL AUDIT OUTCOME AND REVENUE MANAGEMENT During the year under review a Local Government Au-

dit Response Plan based on the 2012/13 local govern-

ment audit outcomes was developed and implemen-

tation monitored through provincial Intergovernmental

Relations structures. Credit control and debt collection

policies of 12 municipalities’ were evaluated. The gaps

identified during the evaluation process were provid-

ed as guidance for municipalities to implement during

future budget processes. Six Feasibility study reports

on revenue enhancement through the public & private

partnership on smart meter have been completed. 24

municipalities were monitored and assisted to recover

outstanding debt by government departments.

MUNICIPAL PROPERTY RATES ACT During the year under review, 40 municipalities were

monitored and assessed with respect to compliance

with the Municipal Property rates Act (MPRA) and

guidance (by way of findings and recommendations)

was provided to 29 non-complying municipalities. The

assessment indicated that 11 municipalities were in

compliance. To address recurring weaknesses and

challenges identified in respect of similar work un-

dertaken in 2012/13 and 2013/14 financial years (on

24 and 30 municipalities respectively), Circular No. 6

(of 10 April 2014) accompanied by specimen property

rates by-law, and a resolution for levying rates, (which

provided guidance on implementation of relevant sec-

tions of the Act) was issued to all 234 municipalities

(with power to levy property rates) and provinces.

Secondly, Circular No. 8 (of 19 December 2014) which

provided guidance to provinces and all 234 municipal-

ities regarding the correct application of section 80 of

the Act (condoning of municipal non-compliance with

actions that must be done within specific stipulated

time frames) was also issued. In addition, Circular No.

7 (of 15 December 2014) communicating critical pro-

visions of the Municipal Property Rates Amendment

Act (2014) and related matters, which require explana-

tion to facilitate implementation, was issued to all 234

municipalities and provinces.

Page 48: ANNUAL REPORT - COGTA

46

MUNICIPAL INFRASTRUCTURE DEVELOPMENT COORDINATIONTo facilitate Infrastructure Development collaboration

between various stakeholders on municipal infrastruc-

ture development through the Inter-Ministerial Task

Team on Basic Services and the administration of the

Municipal Infrastructure Grant (MIG) which is aimed

at funding infrastructure to assist in addressing service

backlogs, with a special focus on 27 prioritised District

Municipalities in terms of the Medium Term Strategic

Framework 9.

The total allocation of the MIG grant for the 2014/15

financial year is R14, 8 billion. As at 31 March 2015,

100 percent of the allocation was transferred and 59

percent was reported as spent. The expenditure can

be broken down as follows in terms of the sectors: 32

percent on water, 19 percent on sanitation, 1 percent

on community lighting, 33 percent on roads and storm

water, 1 percent on solid waste, 4 percent on sport and

recreation, 7 percent on public facilities (cemeteries, li-

braries, community halls, taxi ranks etc.) 2 percent on

uncategorised projects and 2 percent on the project

management units.

In terms of the 27 District Municipalities, as at

end March 2015, they have spent 57 percent

(R7, 5 billion) of their allocation of R13,2 billion. A bal-

ance of R5, 7 billion is still to be spent in the last three

months of the financial year.

As at 31 March 2015 the following projects were in var-

ious stages of pre-implementation and implementation

specifically in the 27 District Municipalities: 349 water

projects, 171 sanitation projects, 45 community or street

lighting projects, 768 roads and storm water projects,

28 Solid waste projects, 133 sport projects and 380

other public facilities such as cemeteries, community

halls, taxi ranks and libraries.

FREE BASIC SERVICES COORDINATIONDuring the year under review support to 40 municipal-

ities was completed. Recommendations and actions

were agreed upon with each municipality for implemen-

tation. The reviews of all Indigent Policies and Registers

were completed. The specific recommendations on the

review and update of Indigent Policies and Registers,

based on gaps identified, were packaged in guidelines

for municipalities to implement.

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Info

rma

tio

n

SE

RV

ICE

DE

LIV

ER

Y A

CH

IEV

EM

EN

TS

The

tabl

e be

low

pro

vide

s ac

tual

pro

gres

s ag

ains

t pl

anne

d ta

rget

s pe

r su

b-pr

ogra

mm

e as

wel

l as

reas

ons

for

varia

nce

on t

arge

ts t

hat

wer

e ei

ther

par

tially

ach

ieve

d or

not

achi

eved

.

Str

ate

gic

O

bje

ctiv

e

Act

ua

l A

chie

vem

en

t 2

013

/14

Pla

nn

ed

Ta

rge

t 2

014

/15

Ind

ica

tors

A

ctu

al A

chie

vem

en

t 2

014

/15

De

via

tio

n f

rom

Act

ua

l A

chie

vem

en

t

Co

mm

en

t o

n

De

via

tio

ns

Impl

emen

t in

itiat

ives

to

im-

prov

e fin

anci

al

sust

aina

bilit

y,

reve

nue

man

-ag

emen

t an

d au

dit

outc

omes

in

Loc

al G

ov-

ernm

ent.

New

pro

ject

A

Loc

al G

over

nmen

t A

udit

Res

pons

e Pl

an

base

d on

the

201

3/1

4

loca

l gov

ernm

ent au

dit

outc

omes

dev

elop

ed,

impl

emen

tatio

n m

on-

itore

d an

d a

repo

rt

prod

uced

by

31 M

arch

201

5 t

hrou

gh p

rovi

ncia

l IG

R s

truc

ture

s.

Loca

l Gov

ernm

ent A

udit

resp

onse

pla

n de

velo

ped,

im

plem

ente

d an

d a

repo

rt

prod

uced

by

targ

et d

ate

Ach

ieve

d

The

impl

emen

tatio

n of

the

aud

it ou

tcom

es r

espo

nse

plan

was

m

onito

red

and

a re

port

pro

-du

ced.

The

201

3/1

4 n

atio

nal a

udit

resp

onse

pla

n w

as a

lso

pro-

duce

d.

--

-Fr

amew

ork

for

im-

prov

ing

the

leve

l of

assu

ranc

e pr

ovid

ed

by k

ey rol

e pl

ayer

s in

mun

icip

al fi

nanc

ial

man

agem

ent an

d go

v-er

nanc

e de

velo

ped

and

appr

oved

Fram

ewor

k fo

r im

prov

ing

the

leve

l of as

sura

nce

prov

ided

by

key

role

pla

y-er

s in

mun

icip

al fi

nanc

ial

man

agem

ent an

d go

v-er

nanc

e de

velo

ped

and

impl

emen

ted

Ach

ieve

d

The

fram

ewor

k w

as reg

arde

d as

insu

ffici

ent to

add

ress

the

po

licy

gap. A

legi

slat

ive

revi

ew

is n

eces

sary

. The

pro

ject

was

th

eref

ore

incl

uded

into

the

Lo-

cal G

over

nmen

t La

ws

Am

end-

men

t B

ill p

roce

ss.

The

proj

ect re

late

d to

the

de-

velo

pmen

t an

d ap

prov

al o

f a

Fram

ewor

k fo

r im

prov

ing

the

leve

l of as

sura

nce

prov

ided

by

key

rol

e pl

ayer

s in

mun

ic-

ipal

fina

ncia

l man

agem

ent

and

gove

rnan

ce h

as b

een

inco

rpor

ated

to

form

par

t of

th

e le

gisl

ativ

e re

view

thr

ough

th

e Lo

cal G

over

nmen

t La

ws

Am

endm

ent B

ill

-

-A

sup

port

pro

gram

me

to s

tren

gthe

n th

e fu

nctio

nalit

y of

MPA

C’s

de

velo

ped

by 3

0 J

une

201

4 a

nd im

plem

ente

d by

31 M

arch

201

5

Initi

ativ

es to

stre

ngth

en

the

finan

cial

man

agem

ent

assu

ranc

e an

d ov

ersi

ght

to lo

cal g

over

nmen

t de

-ve

lope

d an

d im

plem

ente

d by

tar

get da

te.

Ach

ieve

d

Trai

ning

was

con

duct

ed in

M

arch

201

5 tar

getin

g 4 p

rov-

ince

s: G

aute

ng; N

orth

ern

Cap

e;

Mpu

mal

anga

and

Fre

e Sta

te.

--

Page 50: ANNUAL REPORT - COGTA

48

Str

ate

gic

O

bje

ctiv

e

Act

ua

l A

chie

vem

en

t 2

013

/14

Pla

nn

ed

Ta

rge

t 2

014

/15

Ind

ica

tors

A

ctu

al A

chie

vem

en

t 2

014

/15

De

via

tio

n f

rom

Act

ua

l A

chie

vem

en

t

Co

mm

en

t o

n

De

via

tio

ns

Impl

emen

t in

itiat

ives

to

im-

prov

e fin

anci

al

sust

aina

bilit

y,

reve

nue

man

-ag

emen

t an

d au

dit

outc

omes

in

Loc

al G

ov-

ernm

ent

30 C

redi

t co

ntro

l an

d de

bt c

ol-

lect

ion

polic

ies

have

bee

n as

sess

ed; m

u-ni

cipa

litie

s ha

ve

been

info

rmed

of

pol

icy

gaps

id

entifi

ed.

Mun

icip

ality

spe

cific

in

itiat

ives

to

impr

ove

reve

nue

man

agem

ent

and

debt

col

lect

ion

deve

lope

d an

d im

ple-

men

ted

in 2

0 m

unic

-ip

aliti

es b

y 31

Mar

ch

201

5

Initi

ativ

es to

impr

ove

reve

nue

man

agem

ent an

d de

bt c

olle

ctio

n in

spe

cific

m

unic

ipal

ities

dev

elop

ed

and

impl

emen

ted

by

targ

et d

ate.

Ach

ieve

d

12 m

unic

ipal

ities

’ cre

dit co

ntro

l an

d de

bt c

olle

ctio

n po

licie

s w

ere

eval

uate

d an

d gu

idan

ce

on h

ow to

impl

emen

t th

e ga

ps

iden

tified

was

pro

vide

d;

6 F

easi

bilit

y st

udy

repo

rts

on

reve

nue

enha

ncem

ent pu

blic

pr

ivat

e pa

rtne

rshi

ps, a

nd s

mar

t m

eter

pro

ject

s ha

ve b

een

com

-pl

eted

;

24 m

unic

ipal

ities

wer

e m

on-

itore

d on

pay

men

t of

out

-st

andi

ng d

ebt by

gov

ernm

ent

depa

rtm

ents

--

new

Dev

elop

and

impl

e-m

ent

an a

ctio

n pl

an for

th

e im

prov

emen

t of

the

C

ity o

f Jo

hann

esbu

rg

Met

ro’s

bill

ing

chal

-le

nges

Dev

elop

and

impl

emen

t ac

tion

plan

s fo

r im

prov

-in

g th

e bi

lling

sys

tem

s of

M

etro

polit

an M

unic

ipal

-iti

es

Ach

ieve

d

An

actio

n pl

an w

as d

evel

oped

st

ipul

atin

g ke

y fo

cus

area

s in

th

e im

prov

emen

t of

the

CoJ

bi

lling

cha

lleng

es. C

oJ h

ad

to p

riorit

ise

fund

ing

for

the

impl

emen

tatio

n of

the

pla

n as

th

ese

wer

e no

t af

ford

able

by

the

depa

rtm

ent.

--

Page 51: ANNUAL REPORT - COGTA

49

Chapter 2

Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

ap

ter

2 •

Pa

rt B

: DC

oG

Pe

rfo

rma

nce

Info

rma

tio

n

Str

ate

gic

O

bje

ctiv

e

Act

ua

l Ach

ieve

me

nt

20

13/

14P

lan

ne

d T

arg

et

20

14/

15In

dic

ato

rs

Act

ua

l Ach

ieve

me

nt

20

14/

15

De

via

tio

n

fro

m A

ctu

al

Ach

ieve

me

nt

Co

mm

en

t o

n

De

via

tio

ns

Man

age

the

impl

emen

tatio

n of

the

MPR

A b

y im

plem

entin

g th

e re

gula

tory

fr

amew

ork,

an

d m

onito

ring

mun

icip

aliti

es

rega

rdin

g co

m-

plia

nce

with

the

A

ct.

30 m

unic

ipal

ities

mon

i-to

red

and

asse

ssed

with

re

spec

t to

com

plia

nce

with

the

MPR

A a

nd

guid

ance

pro

vide

d to

no

n-co

mpl

iant

mun

icip

al-

ities

40 m

unic

ipal

ities

mon

-ito

red,

and

ass

esse

d pe

rtai

ning

to

com

pli-

ance

with

the

MPR

A

and

guid

ance

pro

vide

d to

non

-com

plyi

ng m

u-ni

cipa

litie

s by

31 M

arch

201

5

Num

ber

of m

unic

ipal

ities

m

onito

red,

ass

esse

d an

d gu

ided

to

com

ply

with

M

PRA

by

targ

et d

ate.

Ach

ieve

d

40 m

unic

ipal

ities

wer

e m

oni-

tore

d an

d as

sess

ed p

erta

inin

g to

com

plia

nce

with

the

MPR

A

and

guid

ance

on

how

to

ad-

dres

s th

e no

n-co

mpl

ianc

e w

as

prov

ided

to

29 n

on-c

ompl

ying

m

unic

ipal

ities

. The

ass

essm

ent

foun

d 11

mun

icip

aliti

es to

be in

co

mpl

ianc

e.

--

Str

engt

hen

the

capa

city

of

mun

icip

ali-

ties

to d

eliv

er

sust

aina

ble

in-

fras

truc

ture

and

in

crea

se a

cces

s to

bas

ic s

er-

vice

s, in

clud

ing

prov

isio

n of

fre

e ba

sic

serv

ices

to

the

poo

r

Tota

l mun

icip

aliti

es

supp

orte

d ar

e 61

. Cap

ac-

ity b

uild

ing

wor

ksho

ps

conv

ened

with

mun

icip

al

man

ager

s fo

r FB

S a

nd

coun

cillo

rs r

espo

nsib

le f

or

FBS in

FS, E

C, K

ZN, a

nd

NW

& N

C. T

he w

orks

hops

ca

paci

tate

d m

unic

ipal

-iti

es w

ith m

echa

nism

s to

pro

vide

FB

S t

o po

or

hous

ehol

ds. R

epor

ts f

or

all w

orks

hops

det

ailin

g ac

hiev

emen

ts a

re a

vail-

able

40 m

unic

ipal

ities

sup

-po

rted

on

mec

hani

sm

to p

rovi

de F

BS b

y 31

M

arch

201

5

Iden

tified

mun

icip

aliti

es

supp

orte

d on

mec

ha-

nism

s to

pro

vide

FB

S b

y ta

rget

dat

e

Ach

ieve

d

Sup

port

to

40 m

unic

ipal

ities

co

mpl

eted

; hig

h le

vel r

ecom

-m

enda

tions

and

act

ions

agr

eed

upon

with

eac

h m

unic

ipal

ity for

im

plem

enta

tion.

--

Page 52: ANNUAL REPORT - COGTA

50

Str

ate

gic

O

bje

ctiv

e

Act

ua

l A

chie

vem

en

t 2

013

/14

Pla

nn

ed

Ta

rge

t 2

014

/15

Ind

ica

tors

A

ctu

al A

chie

vem

en

t 2

014

/15

De

via

tio

n f

rom

Act

ua

l A

chie

vem

en

t C

om

me

nt

on

D

evi

ati

on

s

Non

e Ph

ase

1: D

raft r

epor

t on

dat

a co

llect

ion

prod

uced

by

31 M

arch

201

5

Eval

uatio

n on

the

FB

S

prog

ram

con

duct

ed b

y ta

rget

dat

e

Not

App

licab

le

This

pro

ject

was

dis

-co

ntin

ued

and

rem

oved

from

the

APP

in Q

2, t

o av

oid

undu

e du

plic

atio

n w

ith the

ass

essm

ents

of

mun

icip

aliti

es (

i.e. B

ack

to

Bas

ics

profi

les)

.

-

New

indi

cato

r M

IG p

roje

cts

and

Wat

er In

fras

truc

ture

B

ackl

ogs

alig

ned

Num

ber

of M

unic

ipal

ities

su

ppor

ted

to Im

prov

e pl

anni

ng for

impr

oved

sp

endi

ng a

nd In

fras

truc

-tu

re b

ackl

og e

radi

catio

n

Part

ially

ach

ieve

d

MIG

pro

ject

s an

d w

ater

infr

a-st

ruct

ure

proj

ects

alig

ned

in 1

7

of 2

7 tar

gete

d di

stric

ts

10 d

istr

ict m

unic

ipal

ities

no

t ac

hiev

ed a

re s

ubje

ct

to D

WS c

ompl

etin

g ba

ck-

logs

stu

dies

The

proc

ess

to

alig

n M

IG p

roje

cts

will

be

final

ised

by

July

201

5

New

indi

cato

r M

IG P

erfo

rman

ce m

on-

itorin

g an

d re

port

ing

syst

ems

deve

lope

d by

31

Mar

ch 2

015

Impr

oved

MIG

per

for-

man

ce m

onito

ring

and

repo

rtin

g

Part

ially

Ach

ieve

d

The

syst

em h

as b

een

deve

l-op

ed. I

t re

quire

s co

nsul

tatio

n w

ith p

rovi

nces

prio

r to

impl

e-m

enta

tion

New

app

roac

h de

velo

ped

and

introd

uced

to

prov

-in

ces

on 1

2 M

arch

201

5.

Nee

ds fur

ther

con

sulta

tion

with

pro

vinc

es a

nd in

tro-

duct

ion

to m

unic

ipal

ities

.

The

MIG

rep

ortin

g ne

eds

to b

e su

p-po

rted

by

a pr

oper

pr

oces

s w

here

by

mun

icip

aliti

es a

re

acco

unta

ble

for

mon

thly

, qua

rter

ly

and

annu

al rep

orts

.

Effe

ctiv

ely

man

age

the

Mun

icip

al

Infr

astr

uctu

re

Gra

nt

128 m

unic

i-pa

litie

s w

ere

supp

orte

d to

im

plem

ent

the

MIG

pro

gram

me

Mun

icip

aliti

es s

pend

ing

less

tha

n 80%

of M

IG

in p

revi

ous

finan

cial

ye

ar, s

uppo

rted

Perc

enta

ge o

f m

unic

ipal

i-tie

s su

ppor

ted

to im

prov

e M

IG e

xpen

ditu

re b

y ta

rget

da

te

Ach

ieve

d

Spe

cial

inte

rven

tion

mee

tings

w

ere

held

with

mun

icip

aliti

es

who

are

spe

ndin

g le

ss tha

n 80%

of M

IG. M

unic

ipal

ities

w

ere

also

sup

port

ed thr

ough

th

e m

onth

ly p

rogr

ess

mee

tings

--

Page 53: ANNUAL REPORT - COGTA

51

Chapter 2

Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

ap

ter

2 •

Pa

rt B

: DC

oG

Pe

rfo

rma

nce

Info

rma

tio

n

PR

OG

RA

MM

E 3

: SU

B P

RO

GR

AM

ME

BU

DG

ET

AN

D A

CT

UA

L E

XP

EN

DIT

UR

ETh

e ex

pend

iture

and

var

ianc

e ve

rsus

the

fina

l app

ropr

iatio

n is

pro

vide

d be

low

:

Su

b-P

rog

ram

me

Na

me

20

14/

20

152

013

/2

014

Fin

al

Ap

pro

pri

ati

on

Act

ua

l P

erf

orm

an

ce

(Ove

r) U

nd

er

Exp

en

dit

ure

Fin

al

Ap

pro

pri

ati

on

Act

ua

l P

erf

orm

an

ce

(Ove

r) U

nd

er

Exp

en

dit

ure

Man

agem

ent:

Gov

ern

ance

15 4

66

15 4

66

-9 8

00

9 7

99

1

Inte

rgov

ern

men

tal C

oord

inat

ion

6 3

196 3

19-

4 9

86

4 9

86

-

Inte

rgov

mn

tl F

isca

l Rel

atio

n12

425

12 4

25

-26 8

58

15 6

29

11 2

29

Gov

ern

ance

an

d P

ub

lic P

arti

cip

atio

n2 9

772 9

77-

3 5

773 5

09

68

Sou

th A

fric

an L

ocal

Gov

ern

men

t A

ssoc

iati

on26 9

04

26 9

04

-25 9

99

25 9

99

-

Mu

nic

ipal

Dem

arca

tion

Boa

rd4

4 2

30

44 2

30

-42 1

52

42 1

52

-

Sou

th A

fric

an C

itie

s N

etw

ork

6 0

716 0

71-

13 9

09

13 8

88

21

Un

ited

Cit

ies

and

Loc

al G

over

nm

ent

of A

fric

a5 5

94

3 2

09

2 3

85

3 2

08

-3 2

08

Loca

l Gov

ern

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are

44 4

90 1

45

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92 0

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141

64

5 2

85

Page 54: ANNUAL REPORT - COGTA

52

Purpose

Promote an integrated and coordinated system of disas-

ter management with special emphasis on prevention,

mitigation and preparedness by national, provincial and

municipal organs of state, statutory functionaries and

other role players involved in disaster management and

communities. This programme is also responsible for the

administration and oversight of fire services legislation.

Objectives and measure

The programme seeks to achieve the following objectives:

i) Support the establishment and operation of effective

fire services and disaster management by:

- enhancing the fire services legislative framework

by developing a draft Fire Services White Paper by

March 2016, to ensure that the legislation is respon-

sive to the changing conditions in the sector; and

- introducing the Disaster Management Amendment

Bill to Parliament, by March 2016.

ii) Create public awareness of disaster reduction by rolling

out the disaster risk reduction advocacy and aware-

ness programmes, such as International Day for Disas-

ter Reduction in provinces, by March 2016.

iii) Develop and implement a monitoring and evaluation

framework to improve and strengthen the system of di-

saster management and fire services, by March 2016.

Service delivery objectives and indicators

LEGISLATION, POLICY AND COMPLIANCE MANAGEMENTThe Chief Directorate: Legislation, Policy and Compliance

Management develops disaster management and fire

services policies, legislative frameworks and guidelines

derived from the Disaster Management Act, 2002; the

2.4.4 Programme 4: National Disaster Management Centre (NDMC)

National Disaster Management Framework, 2005, and

the Fire Brigade Services Act, 1987. The Chief Director-

ate also provides support to stakeholders on the imple-

mentation of the policies and frameworks across the

sectors and spheres of government.

In 2014/15, the Chief Directorate: Legislation, Policy and

Compliance Management, in executing this mandate,

§ Developed three national policy documents which

include,

- The Draft White Paper on Fire Services, approved

by the Minister for submission to Cabinet. As part

of this process, the unit extensively engaged with

fire services stakeholders in all spheres of govern-

ment and the private sector to obtain inputs and

support for the draft White Paper on Fire Service;

- The Disaster Management Amendment Bill, ap-

proved by Cabinet for submission to Parliament;

and

- The National Fire Safety and Prevention Strategy.

§ Developed two organisational policy documents

which include,

- The Disaster Management Legislative Compliance

Framework, and

- The Procedure for the development of disaster

management guidelines.

§ Supported response efforts, more particularly to

the earthquake in the North West province and the

floods in Malawi.

§ Supported the development of response plans for

specific hazards more notably the preparations for

incidents at the Pelindaba nuclear complex.

§ Organised and hosted a national fire safety seminar

with a view to provide a platform for sharing good

practices amongst fire safety and prevention prac-

titioners.

§ Prepared a draft National Action Plan for the imple-

mentation of the Urban Search and Rescue Frame-

work.

§ Prepared and signed a Memorandum of Under-

standing (MOU) between the NDMC and the Fire

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Protection Association of Southern Africa (FPASA), for

purposes of cooperation on fire services matters.

§ Provided support to various provincial governments on

the organisational arrangements required for the es-

tablishment of a fire services focal point at a provincial

level.

PLANNING, COORDINATION, INTERVENTION AND SUPPORTThe Chief Directorate develops and implements disaster

management operational systems; coordinates disaster

management capacity building and strategic research

across all three spheres of government and provides for

the allocation of disaster response, relief and rehabilitation

funding when there has been a disaster.

Since the beginning of the financial year 2014/15, our

country has experienced numerous disastrous occurrenc-

es resulting from hazards such as drought, fires, floods,

severe storms, etc., which have resulted in significant

losses to property and lives and the destruction on eco-

systems. The following amounts were transferred to the

relevant provinces/municipalities: R10 867 000, R181

312 970 and R85 951 000 for Municipal Disaster Grant,

Municipal Disaster Recovery Grant and Provincial Disaster

Grant, respectively.

EDUCATION AND TRAINING PROGRAMMESFostering partnerships with institutions of higher learning

to promote disaster management education and training

programmes:

The Department of Cooperative Governance (DCoG),

through the National Disaster Management Centre part-

nered with Univen through their School of Environmen-

tal Sciences, to host a national conference under the

theme “Disaster Risk Science and Management: South

Africa’s Response in a Changing Global Environment”,

in March 2015. The conference was two-phased, i.e.:

Pre-Conference – hosted at Univen main campus from

the 25th – 27th of March 2015 and the main confer-

ence – held at Protea Hotel, The Ranch Resort in Polok-

wane

The main conference brought together specialists, ac-

ademics, government departments, public entities and

private organisations with the sole purpose of sharing

information and experiences. The conference further af-

forded disaster management practitioners and profes-

sionals an opportunity to engage in robust discussions

towards ensuring curricula relevance in institutions of

higher learning; with focus on disaster management.

The theme of the main conference was aligned to the

standing memorandum of understanding between the

University of Venda and National Disaster Management

Centre, which encourages the introduction and launch

of a Bachelor’s Degree programme in Disaster Risk Sci-

ences. It is anticipated that this degree programme will

be offered by the University of Venda from the 2016

academic year.

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54

ADVOCACY AND PUBLIC AWARENESS PROGRAMMESDuring 2014/2015 financial year, the Directorate facili-

tated the implementation of advocacy and awareness

campaigns in nine (9) Provinces through both oversight

(National Capacity Building Coordinating Forum Meet-

ings), visits and support of provincial events, including

the commemoration of the International Day of Disaster

Reduction (IDDR).

The NDMC disaster risk reduction initiatives implement-

ed in 2014/15 contributed to building individual, institu-

tional and environmental capacities in all three spheres

of government. The disaster risk reduction and capacity

building initiatives enhanced the implementation of in-

ternational and national frameworks (International Day

for Disaster Reduction) as well as community-based di-

saster risk reduction. Communities were capacitated on

how to reduce their disaster risks, thus increasing pre-

paredness towards safe-guarding social, economic and

environmental assets; with greater emphasis on saving

lives.

Commemoration of the International Day of Di-

saster Reduction (IDDR) “Older Persons and Di-

sasters” in three Provinces

Support was provided towards the hosting of the 2014

IDDR commemorations in the Eastern Cape, Gauteng

and North West provinces. The theme for national IDDR

“Older Persons and Disasters” was also launched at

these events.

The national commemoration of the 2014 IDDR was

held in Bojanala Platinum District Municipality - North

West Province from 13 to 14 October 2014. The South

African 2014 IDDR commemoration was honoured by the

presence of United Nations International Strategy for Di-

saster Reduction (UNISDR) delegate from the office of

the UN Secretary General, Ms Sharon Rusu, who partic-

ipated in the event and delivered a message of support

from the United Nations.

The political leadership of the North West led by the Hon.

Premier, S Mahumapelo signed the provincial declaration

and adopted the provincial strategy on disaster risk reduc-

tion as guided by the UNISDR Ten Essentials. The premier

also committed to the implementation of some of the ten

steps through the provincial Setsokotsane programme.

The commemoration was concluded on the second day

(14th October 2014) with an outdoor public event led by

the Honourable Deputy Minister, Mr Nel, Honourable Pre-

mier of North West, Mr Mahumapelo, Deputy Minister

for Water and Sanitation, Ms Tshwete, Traditional Leaders

and Councillors. Following the outdoor public engage-

ments on “The Older Persons and Disasters”, a National

Pledge was signed.

INTELLIGENCE AND INFORMATION MANAGEMENT SYSTEMS The Chief Directorate guides the development of a com-

prehensive information management and communication

system and establishes integrated communication links

with all disaster management role players.

EARLY WARNINGS & CAPABILITY MANAGEMENT SYSTEMSThe Early Warnings and Capability Systems Director-

ate conducts its operational planning in terms of spe-

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cific clauses within the Disaster Management Act 57

of 2002. In compliance with legislative requirements,

the Directorate produces an annual Indicative Risk and

Vulnerability Profile for various hazards, maintains and

improves a spatial interface (GIS) to assist the disaster

management fraternity and is responsible for dissem-

ination of early warnings for pending disaster events.

During the 2014/15 financial year, the Directorate un-

dertook to produce a National Indicative Risk and Vul-

nerability profile for windstorms, and this was done in

partnership with the South African Weather services. In

addition, the Directorate also commissioned the Coun-

cil for Scientific and Industrial Research (CSIR) Meraka

Institute to quantify the hazard relating to snowfall in

South Africa. This was a first attempt at quantifying a

hazard using multi- temporal satellite imagery and sta-

tistical analysis.

In addition to the above, the directorate was also in-

volved in updating its spatial interface repository of in-

formation to support both local and provincial disaster

management functions and issuing early warnings for

specific severe weather related events.

MONITORING AND EVALUATIONSection 21 of the Disaster Management Act requires

the establishment of mechanisms for monitoring, mea-

suring and evaluation of disaster management plans,

prevention efforts, mitigation, response and recovery by

organs of state and other key role players involved in

disaster management. In this regard the Performance

Monitoring and Evaluation Chief Directorate is respon-

sible for ensuring that an integrated system to monitor

and evaluate the effectiveness of disaster manage-

ment and fire services is developed and implemented

in the country. During the 2014/15 financial year, the

chief directorate developed, consulted and adopted the

Disaster Management M&E Implementation plan, Key

Performance Indicators (KPIs) for the NDMC, Sector

Departments, Provincial Disaster Management Centres

and Municipalities as well as Reporting tools.

SE

RV

ICE

DE

LIV

ER

Y A

CH

IEV

EM

EN

TS

The

tabl

e be

low

indi

cate

s ac

tual

pro

gres

s ag

ains

t pl

anne

d ta

rget

s pe

r su

b-pr

ogra

mm

e as

wel

l as

reas

ons

for

varia

nce

on tar

gets

tha

t w

ere

not ac

hiev

ed.

Str

ate

gic

Ob

ject

ive

A

ctu

al

Ach

ieve

me

nt

20

13/

14

Pla

nn

ed

Ta

rge

t 2

014

/15

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ica

tors

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chie

vem

en

t 2

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via

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m A

ctu

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ieve

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mm

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ns

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rdin

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rvic

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y en

hanc

ing

the

legi

slat

ive

fram

ewor

k fo

r fir

e se

rvic

es t

o re

spon

d to

cha

ngin

g co

nditi

ons

by

Mar

ch 2

019

Dra

ft W

hite

Pap

er

on F

ire S

ervi

ces

was

su

bmitt

ed f

or p

roce

ss-

ing

to t

he O

ffice

of th

e M

inis

ter

Fin

al D

raft

Whi

te P

aper

on

Fire

Ser

vice

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velo

ped

and

subm

itted

to

the

Min

iste

r by

31

Mar

ch 2

015

Fire

Ser

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s le

gisl

atio

n re

view

ed b

y ta

rget

dat

e

Ach

ieve

d

• W

hite

Pap

er in

tegr

ated

key

issu

es fro

m the

B

2B

Pro

gram

me

• A

ppro

ved

by the

Min

iste

r fo

r fu

rthe

r pr

o-ce

ssin

g th

roug

h C

abin

et s

truc

ture

s •

Dra

ft W

hite

Pap

er w

ill for

m b

asis

for

the

D

raft B

ill o

n Fi

re S

ervi

ces

--

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Str

ate

gic

O

bje

ctiv

e

Act

ua

l Ach

ieve

me

nt

20

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(D

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out

in t

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, Nor

th W

est,

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popo

, Gau

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for

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w

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ains

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nsul

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in

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it

ratifi

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y 31

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ch 2

015.

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ort

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ieve

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• N

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M A

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an d

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acity

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uild

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rum

(N

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CF)

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mes

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5 P

rovi

nces

(EC

; KZN

; M

P; N

W &

WC

) on

floo

ds, B

asic

Em

erge

ncy,

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ety

& F

ire E

duca

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AFE

); s

ever

e w

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er a

war

enes

s an

d fir

es in

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rmal

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ents

• Pu

blic

aw

aren

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prog

ram

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faci

li-ta

ted

thro

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host

ing

of the

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BC

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at a

sses

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impl

emen

ta-

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ocac

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nduc

ted

thro

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en-

gage

men

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unic

ipal

ities

on

DM

pla

ns –

B2B

dia

gnos

tic e

xerc

ise

at m

unic

ipal

ities

--

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Info

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tem

to

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The

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amew

ork

was

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el-

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pre

sent

ed t

o th

e N

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aste

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anag

emen

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ory

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n th

e 19

th o

f M

arch

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4.

Furt

her

inpu

ts w

ere

requ

este

d fo

r th

e im

plem

enta

tion

proc

ess

for

the

next

fin

anci

al y

ear.

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fram

ewor

k w

as a

lso

pres

ente

d at

the

Adv

isor

y Fo

rum

s in

Nor

ther

n C

ape

and

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te.

Rep

ort on

the

im

plem

enta

-tio

n of

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E Fr

amew

ork

prod

uced

by

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arch

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5

Mon

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g an

d Ev

alua

tion

syst

ems

for

DM

an

d Fi

re S

er-

vice

s de

velo

ped

by tar

get da

te

Ach

ieve

d

• D

M M

&E

Impl

emen

tatio

n Pl

an w

as

deve

lope

d, a

dopt

ed b

y th

e N

DM

AF

and

appr

oved

by

HO

C.

• Ke

y Pe

rfor

man

ce In

dica

tors

(KPI

s) for

N

DM

C, S

ecto

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tmen

ts, P

DM

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and

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icip

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-su

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upon

and

ado

pted

.•

Rep

ortin

g to

ols

deve

lope

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nd

adop

ted

by P

DM

C. P

rese

nted

to

the

prov

inci

al w

orks

hops

of th

e th

ree

prov

ince

s ta

rget

ed for

sup

port

. Pr

esen

ted

to S

ALG

A a

nd s

ome

of the

PD

MC

Adv

isor

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rum

s.•

Rep

ortin

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ols

wer

e ci

rcul

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to

all P

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to b

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ed for

qua

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rts.

Perf

orm

ance

rep

orts

rec

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nces

and

the

ir m

unic

ipal

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th

at w

ere

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uded

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the

pilo

t ph

ase.

• Th

e re

port

on

the

impl

emen

tatio

n of

th

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M M

&E

Fram

ewor

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as d

evel

-op

ed a

nd a

ppro

ved

by the

Hea

d of

C

entr

e.

--

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58

PR

OG

RA

MM

E 4

: SU

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RO

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AM

ME

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DG

ET

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CT

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fina

l app

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d be

low

:

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me

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Purpose

The purpose of the programme is to improve vertical

and horizontal coordination and alignment between the

three spheres of government; promote public partici-

pation in governance through regulatory mechanisms;

and provide oversight, intervention and support pro-

grammes to provinces, municipalities and associated

institutions.

Objectives and measures

i) Strengthen the professionalization and performance

of local government;

ii) Strengthen the functionality of ward committees to

enhance community participation;

iii) Facilitate and coordinate alignment of various devel-

opment planning instruments within and across the

three spheres;

iv) Deepen participatory democracy through strength-

ening gender equity in local government; and

v) Strengthen Anti-corruption capabilities and promote

ethical behaviour/conduct and accountability by

March 2019

Service delivery objectives and indicators

This Programme is divided into seven sub-programmes:

LOCAL GOVERNMENT SUPPORT AND INTERVENTION

§ Municipal Demarcation – current and future commitments

The most pressing need in terms of local government

was to review governance structures to better serve the

needs of our people, including municipal structures. The

review revealed that there are municipalities which are

struggling to deliver services because of insufficient

revenue and inadequate governance arrangements.

The Back-to-Basics programme analysed municipal-

ities across the country and concluded that approx-

imately one-third of all municipalities were dysfunc-

tional. The following four indicators were then used

to assess the sustainability / viability of municipalities:

i) Economic viability;

ii) Tax sustainability;

iii) Financial viability; and

iv) Dependence on inter-governmental transfers.

All of the above options required serious consider-

ation, as the implications for the redetermination of

boundaries could have differing consequences for

municipalities. Some municipalities are not viable and

cannot fully contribute to changing people’s lives. A

possible solution lies in eradicating some municipali-

ties or merging others to create viable delivery struc-

tures that can change the quality of lives of people

within their jurisdiction. After consulting all MECs re-

sponsible for local government in the provinces, a re-

quest was made to the Municipal Demarcation Board

in terms of section 22(2) of the Municipal Demarca-

tion Act.

As part of our integrated approach we are constantly

reviewing the municipal boundaries to improve gov-

ernance, address challenges in unviable municipali-

ties and ensure that communities are better served.

Common weaknesses in such municipalities include

poor accountability and oversight, and inadequate

management systems.

This process should therefore be seen as the first

phase towards addressing non-viable municipalities;

a subsequent phase will follow immediately after the

2016 municipal elections.

2.4.5 Programme 5: Provincial and Municipal Government Support

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60

It must be reiterated that the final assessment and deci-

sion on any determination or redetermination of municipal

boundaries rests with the MDB.

Neither the Ministry nor the Department have any legislative

authority to make any decision in this regard. However, the

relevant legislation does permit the Minister to make recom-

mendations to the MDB for its consideration.

§ Preparations for the 2016 Municipal Elec-tions

Preparations are underway by all stakeholders to prepare

for the fourth democratic elections of all municipal councils,

which must be held within 90 days of 18 May 2016. The

number of councillors for each municipal council has been

determined by MECs based on formulae that was published

in the Government Gazette on 9 September 2014.

The MDB is presently engaged with the delimitation of

wards, and it is envisaged that final ward boundaries will be

handed over to the IEC by the MDB during November 2015.

The IEC will then begin with their preparations across the

country for the holding of elections.

As it is likely that there may be changes to some ward

boundaries, we encourage all voters to make sure that they

confirm where they are registered to vote. All persons who

are eligible to vote are urged to register at their electoral of-

fices to enable them to express their choice of councillor in

the 2016 elections.

§ Local Government: General Laws Amend-ment Bill

Work has begun towards the enactment of legislation that

will amend various pieces of legislation that the Department

is responsible for administering. The draft Bill that was devel-

oped is based on inputs made by various stakeholders. The

content of the Bill will be finalised and processed through the

relevant structures in the 2015 / 2016 financial year.

§ Draft Local Government: Municipal Staff Regulations

The development of the draft Local Government: Municipal

Staff Regulations and Guidelines setting out uniform munici-

pal staff systems and procedures in fulfilment of the

Minister’s regulatory powers have been completed.

The draft Regulations are a culmination of protract-

ed and intensive consultations involving key stake-

holders, including labour and have been certified by

the Chief State Law Advisor.

The setting of these uniform standards will strength-

en the capacity of municipalities to perform their

functions by ensuring that municipalities appoint

suitably qualified and competent persons. It will re-

duce the concentration of persons with critical skills

in affluent municipalities, at the expense of smaller

municipalities by allowing horizontal mobility within

local government. These regulations represent gov-

ernment’s resolve to professionalise municipal ad-

ministration and will go a long way to ensuring that

the high incidence of irregular and inappropriate

appointments is ended. The regulations empower

municipalities to move progressively towards the

upliftment of communities through the provision of

basic services to communities.

THE REGULATIONS ON APPOINTMENT AND CONDITIONS OF EMPLOYMENT OF SENIOR MANAGERS ROLLED-OUT § The Minister published the Local Government:

Regulations on Appointment and Conditions of

Employment of Senior Managers (“the Regula-

tions”) on 17 January 2014 (Notice No. 21) (Gov-

ernment Gazette No.37245) for promulgation.

The Department conducted workshops to ensure

consistent interpretation of the regulations by

municipalities and provinces, to provide support

on the implementation of the regulations. Work-

shops targeted provincial and municipal officials

responsible for municipal human resources, per-

formance management system (PMS) and the

Integrated Development Plan (IDP).

§ A total of 227 out of 278 municipalities attend-

ed the workshops, which constitutes more than

82%. A total of 51 municipalities could not at-

tend. A total audience of 1198 local government

executives, provincial and municipal officials

were work-shopped on the implementation of

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the Regulations (consisting of mayors, deputy may-

ors, mayoral committee members, councillors, mu-

nicipal managers, managers directly accountable to

municipal managers, HR Directors/ Managers, HR

Practitioners, etc). The roll-out of the Regulations is

part of COGTA’s commitment to provide hands-on

support to strengthen the capacity of municipalities

to perform their functions.

LOCAL GOVERNMENT: COMPETENCY FRAMEWORK AND COMPETENCY ASSESSMENT BATTERIESThe Regulations on Appointment and Conditions of

Employment of Senior Managers incorporates the

Local Government: Competency Framework for Se-

nior Managers that prescribes the skills, expertise,

competencies (including competency descriptors and

achievement levels) and qualifications for senior man-

agers. The competency framework consists, on the

one hand, of critical leading competencies that drive

the strategic intent and direction of local government,

and on the other, core competencies that drive the ex-

ecution of the leading competencies.

In order to give effect to the Competency Framework,

the competency assessment batteries have been de-

veloped and piloted in sampled municipalities nation-

ally. The competency assessment batteries have been

validated and the Content Validity Index (CVI) of the

batteries provided evidence of acceptable content in

assessing the various competencies. The main pur-

pose of the competency assessment batteries is de-

velopmental, selection and performance-based as-

sessments. The implementation of the competency

assessment batteries will ensure that municipalities

employ competent senior managers, capable of iden-

tifying challenges besetting the new system of local

government, and propose solutions to such challeng-

es. This will ensure that municipalities appoint senior

managers who will provide and direct a vision for local

government; and plan, manage, monitor and evaluate

specific programmes and projects, in order to deliver

on government priorities.

A Competency Assessment Centre has been establish-

ment within the Department in fulfilment of govern-

ment’s resolve to professionalise local public admin-

istration and strengthen the capacity of municipalities

to perform their functions. The main purpose of the

Competency Assessment Centre is to oversee the im-

plementation of the Competency Framework and As-

sessment Batteries, including operations in all provinc-

es and municipalities. The following model has been

endorsed to set-up the structure of the Competency

Assessment Centre based on the envisaged workload

in each province:

§ 1x National Project Manager

§ 3x National Project Coordinators

§ 9x Provincial Coordinators

§ 8x Metropolitan Municipality Coordinators

§ Record of dismissed staffThe Regulations on the appointment and conditions of

employment of senior managers, passed on 17 Janu-

ary 2014, outlines the various categories of misconduct

and associated sanctions. The consequence or sanc-

tion for financial misconduct, corruption or fraud is that

the person may not be employed in another munici-

pality for ten years. A similar sanction is applicable for

gross misconduct involving elements of dishonesty or

gross negligence. If found guilty of misconduct for sex-

ual assault, sexual harassment or discrimination, the

sanction of eight and five years applies, respectively. If

found guilty of contravening the Code of Conduct for

Municipal Staff, the person will be barred from em-

ployment in a municipality for a period of two years.

These hefty sanctions demonstrate government’s seri-

ousness about consequences for municipal staff found

guilty of misconduct.

A record of dismissed staff, and staff who resigned pri-

or to finalisation of disciplinary proceedings developed

indicates that so far, 2665 disciplinary and dismissal

cases have been captured on the database.

The record will promote good governance and ethical

conduct in local government. The database will serve

as a central repository of information pertaining to dis-

ciplinary proceedings, which will assist in fast tracking

disciplinary cases and serve as a tool to enable munic-

ipalities to “blacklist” staff members who have been

dismissed for misconduct. This record supports gov-

ernment’s resolve to root out corruption in the public

sector, and will prohibit the employment of municipal

Page 64: ANNUAL REPORT - COGTA

62

employees dismissed for misconduct in any municipal-

ity for a prescribed period (the period ranges between

2-10 years).

ANTI-CORRUPTION UNITAs a way of strengthening measures to prevent and

combat fraud and corruption in municipalities, An-

ti-Corruption Technical Working Groups were estab-

lished (ACTWG) in provinces. However, in provinces

where structures similar to the ACTWG already exist-

ed, these structures were aligned and strengthened.

The ACTWGs were established to ensure that the fight

against corruption and the promotion of ethics is inten-

sified, fully coordinated and integrated with synergies

between elements of prevention and enforcement.

The department also conducted an assessment of fo-

rensic reports commissioned by Provinces and in terms

of Section 106 of the Local Government Municipal Sys-

tems Act and those initiated by municipalities for the

period April 2009 to October 2014. The outcome of the

assessment will assist in terms of facilitating criminal,

civil, asset-forfeiture actions emanating from the rec-

ommendations of forensic reports. In instances where

fraud, corruption and maladministration have been

identified, such matters are being referred to law en-

forcement agencies.

A consolidated progress report on allegations of cor-

ruption and related offences reported through the Na-

tional Anti-Corruption Hotline was prepared and sub-

mitted to the Public Service Commission. All provinces

were requested to provide feedback on cases referred

to them.

COORDINATION AND FACILITATION OF CAPACITY BUILDING INITIATIVES The Department of Cooperative Governance and Tradi-

tional Affairs has continued to coordinate and facilitate

capacity building initiatives through a National Munic-

ipal Capacity Coordination and Monitoring Committee

(NMCCMC) and Local Government Learning Network,

inclusive of all stakeholders active in local government

capacity building. It has also been actively preparing for

the new term of office commencing in 2016 to 2020,

by addressing the maintenance of the GAPSKILL (web

based skills audit tool); ensuring that the National Ca-

pacity Building Framework, Strategy and Capacity

Building Sector Plans are revised to inform appropriate

programmes.

These sector plans aim to strengthen the department’s

ability to coordinate all capacity building initiatives di-

rected at local government, and the potential of a Local

Government Learning Centre is being explored, in part-

nership with the Department of Higher Education and

Training, as a possible vehicle to effectively achieve this

coordination.

The establishment of a Learning Centre will ensure that

CoGTA plays a central role in overseeing the content,

effectiveness and efficiency of local government train-

ing and development initiatives, with DHET and LGSE-

TA providing the framework within which formal quali-

fications for the sector will occur, while CoGTA ensures

that more practical learning is addressed. At the initial

phase, the following key departments will play a cen-

tral role: CoGTA and DHET, as well as Treasury (through

its Capacity Building Programme), DPSA (through the

National School of Government), DPME, LGSETA and

SALGA.

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per

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uild

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ate

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arni

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ager

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--

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64

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--

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and

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of w

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ipal

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Part

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ard

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lans

w

ere

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ple-

men

ted

in m

unic

ipal

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ds

by 3

1 M

arch

201

5.T

his

tran

s-la

tes

to a

cum

ulat

ive

num

ber

of 4

154 (

97%

) w

ard

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-at

iona

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ns d

evel

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to

date

and

mea

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d ag

ains

t a

tota

l of 427

7 w

ards

acr

oss

all l

ocal

and

met

ropo

litan

m

unic

ipal

ities

in R

SA

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3%

) w

ard

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outs

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ing

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stitu

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by m

unic

ipal

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in the

Ea

ster

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ape

and

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popo

pro

v-in

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se in

clud

e M

biza

na,

with

31 w

ards

and

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son

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la B

ay w

hich

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es

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all

its 6

0 w

ards

in M

arch

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4. W

ith reg

ards

to

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popo

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lay

in the

dev

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d op

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ns in

M

ogal

akw

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and

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nang

loca

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unic

ipal

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was

as

a re

sult

of

polit

ical

cha

lleng

es.

Mon

itor

the

impl

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enta

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of W

ard

Leve

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prov

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ans

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0 w

ards

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lop

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d le

vel d

ata-

base

Num

ber

of w

ards

w

ith a

dat

abas

e of

co

mm

unity

con

-ce

rns

and

rem

edia

l ac

tions

pro

duce

d by

tar

get da

te

Ach

ieve

d

Sys

tem

s w

ith li

nkag

es to

the

pres

iden

tial h

otlin

e fo

r so

urc-

ing

com

mun

ity c

once

rns

and

feed

back

to

com

mun

ities

de

velo

ped

in a

ll M

pum

alan

-ga

mun

icip

aliti

es (

with

a tot

al

of 4

02 w

ards

).

-D

evia

tion

was

due

to

assi

stan

ce

rece

ived

fro

m p

rovi

ncia

l CO

GTA

. A

s a

resu

lt al

l mun

icip

aliti

es in

th

e pr

ovin

ce w

ere

supp

orte

d

Faci

litat

ion

of c

om-

mun

ity f

eedb

ack

and

enga

gem

ent

mec

hani

sms

to e

n-su

re a

ccou

ntab

ility

-M

unic

ipal

ities

sup

-po

rted

to

com

ply

with

sch

edul

e 5 o

f th

e Lo

cal G

over

n-m

ent:

Mun

icip

al

Sys

tem

s A

ct

Num

ber

of m

unic

-ip

aliti

es s

uppo

rted

to

fac

ilita

te q

uart

er-

ly p

ublic

mee

tings

ca

lled

by c

ounc

ilors

in

eac

h w

ard

by

targ

et d

ate

Ach

ieve

d

Wor

ksho

ps w

ith a

ll M

pum

a-la

nga

and

Lim

popo

mun

ici-

palit

ies

conv

ened

.

Ass

essm

ent re

port

on

the

num

ber

of m

unic

ipal

ities

w

ith c

omm

unity

fee

dbac

k sy

stem

s/m

echa

nism

s an

d th

eir

func

tiona

lity

prod

uced

.

--

Page 68: ANNUAL REPORT - COGTA

66

Str

ate

gic

O

bje

ctiv

e

Act

ua

l A

chie

vem

en

t 2

013

/14

Pla

nn

ed

Ta

rge

t 2

014

/15

Ind

ica

tors

A

ctu

al A

chie

vem

en

t 2

014

/15

De

via

tio

n

fro

m A

ctu

al

Ach

ieve

me

nt

Co

mm

en

t o

n D

evi

ati

on

s

Dee

pen

part

icip

a-to

ry d

emoc

racy

th

roug

h st

reng

then

-in

g ge

nder

equ

ity in

lo

cal g

over

nmen

t

New

pro

ject

G

ende

r Po

licy

Fram

ewor

k fo

r Lo

cal G

over

nmen

t re

vise

d 31

Mar

ch

201

5

Gen

der

Polic

y Fr

amew

ork

for

Loca

l Gov

ernm

ent

revi

ewed

by

targ

et

date

Ach

ieve

d

Gen

der

polic

y fr

amew

ork

for

loca

l gov

ernm

ent re

view

ed

and

final

ised

.

--

Str

engt

hen

anti-

cor-

rupt

ion

capa

bilit

ies

and

prom

ote

ethi

cal

beha

vior

/con

duct

an

d ac

coun

tabi

lity

by m

unic

ipal

ities

34 e

thic

com

mit-

tees

est

ablis

hed

and

mem

bers

tr

aine

d in

Mun

ici-

palit

ies

9 a

nti-co

rrup

tion

tech

nica

l wor

king

gr

oups

est

ablis

hed

by M

arch

201

5

Ant

i-co

rrup

tion

tech

nica

l wor

king

gr

oups

est

ablis

hed

in a

ll Pr

ovin

ces

Ach

ieve

d

9 a

nti-co

rrup

tion

tech

nica

l w

orki

ng g

roup

s w

ere

esta

b-lis

hed.

--

-C

onso

lidat

ed r

epor

t on

the

num

ber

of fra

ud, m

alad

-m

inis

trat

ion

and

corr

uptio

n ca

s-es

man

aged

by

Mar

ch 2

015

All

frau

d, c

orru

ptio

n an

d m

alad

min

istr

a-tio

n ca

ses

man

aged

in

all

Prov

ince

s

Ach

ieve

d

A c

ompr

ehen

sive

rep

ort on

ca

ses

repo

rted

thr

ough

the

N

atio

nal A

nti-

Cor

rupt

ion

hotli

ne w

as a

ppro

ved

and

subm

itted

to

the

Publ

ic S

er-

vice

Com

mis

sion

.

--

Page 69: ANNUAL REPORT - COGTA

67

Chapter 2

Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

ap

ter

2 •

Pa

rt B

: DC

oG

Pe

rfo

rma

nce

Info

rma

tio

n

PR

OG

RA

MM

E 5

: SU

B P

RO

GR

AM

ME

BU

DG

ET

AN

D A

CT

UA

L E

XP

EN

DIT

UR

ETh

e ex

pend

iture

and

var

ianc

e ve

rsus

the

fina

l app

ropr

iatio

n is

pro

vide

d be

low

:

Su

b-P

rogr

amm

e N

ame

20

14/

20

152

013

/2

014

Fin

al

Ap

pro

pri

ati

on

Act

ua

l P

erf

orm

an

ce

(Ove

r) U

nd

er

Exp

en

dit

ure

Fin

al

Ap

pro

pri

ati

on

Act

ua

l P

erf

orm

an

ce

(Ove

r) U

nd

er

Exp

en

dit

ure

Man

agm

ent:

Pro

v &

Loc

al G

ov S

up

p6 9

45

6 9

45

-8 9

59

8 9

59

-

Pro

v G

ovt

Su

pp

& In

terv

enti

on4 4

59

4 4

05

54

10 2

35

10 2

35

-

Loc

Gov

t S

up

p &

Inte

rven

tion

13 8

44

13 8

44

-19

414

19 4

14-

Dev

elop

men

t P

lan

nin

g12

133

12 1

33

-12

957

12 9

57-

Mu

nic

ipal

Sys

tem

s Im

pro

vem

ent

Gra

nt

252 1

52

252 1

52

-240 3

07240 3

07-

Tota

l 2

89

53

32

89

479

54

291

872

291

872

-

Page 70: ANNUAL REPORT - COGTA

68

Purpose

The primary purpose of the Community Work Pro-

gramme (CWP) is to create access to a minimum level

of regular and predictable work opportunities, targeting

areas of high unemployment, where sustainable alter-

natives are likely to remain limited for the foreseeable

future.

Objectives and measures

§ Effective and efficient management and administra-

tion of CWP by March 2019;

§ Provide and maintain 1 million work opportunities in

all municipalities by March 2019; and

§ Establish and maintain partnerships to optimize and

sustain CWP outputs by end 2019

Community Work Programme

The CWP is providing work opportunities and income to

poor and unemployed people through labour intensive

delivery of public and community assets and service,

thereby contributing to community development. The

target to provide an additional 15 000 (total 187 000)

work opportunities by 31 March 2015 was achieved. In

total, 204 187 work opportunities have been provided

across clusters and their respective provinces. CWP

has been established in 185 municipalities (translating

into 185 CWP sites).

With regard to the new CWP Institutional arrange-

ments in the first two quarters of 2014/15, the three

tier implementation model was replaced by a 1 tier

model. Systems have been established to link DCoG

with banks, and the Independent Development Trust

has been appointed, on an interim basis, to manage

the CWP MIS and payroll system.

The Monitoring and Reporting system was developed,

piloted and finalised. All clusters and the respective

provinces were consulted. The programme for roll-out

is underway, This is in addition to the work done in the

2nd and 3rd quarters where the system was piloted

in Mpumalanga, Eastern Cape and Limpopo, Kwazulu

Natal, and the Western Cape.

2.4.6 Programme 6: Infrastructure and Economic Development

Page 71: ANNUAL REPORT - COGTA

69

Chapter 2

Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

ap

ter

2 •

Pa

rt B

: DC

oG

Pe

rfo

rma

nce

Info

rma

tio

n

SE

RV

ICE

DE

LIV

ER

Y A

CH

IEV

EM

EN

TS

The

tabl

e be

low

pro

vide

s ac

tual

pro

gres

s ag

ains

t pl

anne

d ta

rget

s pe

r su

b-pr

ogra

mm

e as

wel

l as

reas

ons

for

varia

nce

on t

arge

ts t

hat

wer

e ei

ther

par

tially

ach

ieve

d or

not

achi

eved

.

Str

ate

gic

O

bje

ctiv

e

Act

ua

l A

chie

vem

en

t 2

013

/14

Pla

nn

ed

Ta

rge

t 2

014

/15

Ind

ica

tors

A

ctu

al A

chie

vem

en

t 2

014

/15

De

via

tio

n

fro

m A

ctu

al

Ach

ieve

me

nt

Co

mm

en

t o

n

De

via

tio

ns

Prov

ide

and

mai

ntai

n 1

mill

ion

wor

k op

port

uniti

es

in 2

34 m

u-ni

cipa

litie

s by

end

FY

201

8/1

9

174 7

25 a

ctua

l wor

k op

port

uniti

es (

216

929 c

umul

ativ

e) w

ere

crea

ted

as a

t 31

Mar

ch

201

4

Add

ition

al 1

5000

(tot

al 1

87 0

00)

wor

k op

port

uniti

es

prov

ided

by

31

Mar

ch 2

015

Num

ber

of

Add

ition

al w

ork

oppo

rtun

ities

pr

ovid

ed a

nd

mai

ntai

ned

by

targ

et d

ate

Ach

ieve

d

A tot

al o

f 202 4

47 w

ork

oppo

rtun

ities

hav

e be

en p

rovi

ded

acro

ss c

lust

ers

and

thei

r re

-sp

ectiv

e pr

ovin

ces

--

CW

P w

as im

plem

ente

d in

at

leas

t 2 w

ards

by

140 m

unic

ipal

ities

15 a

dditi

onal

site

s (t

otal

155)m

unic

i-pa

litie

s w

ith C

WP

site

s es

tabl

ishe

d by

Mar

ch 2

015

Num

ber

of a

ddi-

tiona

l mun

icip

al-

ities

with

CW

P si

tes

incr

ease

d by

Mar

ch 2

017

Ach

ieve

d

CW

P ha

s be

en e

stab

lishe

d in

159 m

unic

ipal

i-tie

s (t

rans

latin

g in

to18

5 C

WP

site

s).

--

The CWP Capacity Building Framework was

finalised in the 2nd quarter and was imple-

mented, with the result that a total of 14 835

participants, as well 275 implementing agents’

site staff and 310 LRC Members were trained.

The CWP Partnerships and Stakeholder Liaison

Framework was implemented, and Memoran-

dums of Understanding were signed with iden-

tified partners and stakeholders to enhance

CWP useful work. A partnership with DSD

was rolled out in July 10-11 in Bushbuckridge,

where a site visit to three ECD centres was

made, and an action plan was developed for

support. A workshop on norms and standards

was held by DSD and the Dept. of Education,

and Sasol donated equipment to CWP in the

Free State. The Klein Letaba River was cleaned

through a partnership with The Department of

Water and Sanitation, DEA, the Association of

Medical Doctors, the Association of Funeral

Parlours, and the communities. A partnership

with DSD was implemented in Pongola where

a workshop with all spheres of government,

as well as the community was held to train

participants on norms and standards of CWP

ECD centres. A partnership with the University

of the North West was established to register

CWP participants with matric to study for the

Grade R Diploma. Through the DCoG partner-

ship with the Japan International Cooperation

Agency (JICA), street bins and skips were pur-

chased and handed over to the Mahikeng Lo-

cal Municipality.

Page 72: ANNUAL REPORT - COGTA

70

Str

ate

gic

O

bje

ctiv

e

Act

ua

l A

chie

vem

en

t 2

013

/14

Pla

nn

ed

Ta

rge

t 2

014

/15

Ind

ica

tors

A

ctu

al A

chie

vem

en

t 2

014

/15

De

via

tio

n

fro

m A

ctu

al

Ach

ieve

me

nt

Co

mm

en

t o

n

De

via

tio

ns

Effe

ctiv

e an

d ef

ficie

nt

man

agem

ent

and

adm

in-

istr

atio

n of

C

WP

Two

BD

F st

ruct

ures

w

ere

inst

ead

esta

b-lis

hed

in t

he C

acad

u an

d uM

gung

undl

ovu

DM

s.

Cat

alyt

ic B

usin

ess

Ven-

ture

s id

entifi

ed in

the

D

istr

ict

Mun

icip

aliti

es.

The

Uni

t is

pla

ying

a

pivo

tal r

ole

in a

ssis

ting

with

unb

lock

ing

bloc

k-ag

es in

the

iden

tified

pr

ojec

ts.

Proc

esse

s ar

e un

der-

way

to

faci

litat

e th

e co

mm

itmen

ts f

rom

th

e W

ater

berg

Dis

tric

t M

unic

ipal

ity a

nd P

rivat

e se

ctor

. Env

ironm

enta

l Sca

n to

und

erst

and

the

econ

omic

pro

files

of

the

tar

gete

d m

u-ni

cipa

litie

s ha

s be

en

deve

lope

d

CW

P Pa

rtne

rshi

p Sta

keho

lder

Rel

a-tio

ns M

anag

emen

t Fr

amew

ork

deve

l-op

ed b

y M

arch

201

5

MO

Us

sign

ed w

ith

iden

tified

par

tner

s an

d st

akeh

olde

rs

Part

ners

hip

fram

ewor

k fo

r C

WP

deve

lope

d by

tar

get da

te

Ach

ieve

d

CW

P Pa

rtne

rshi

p an

d Sta

keho

lder

Lia

ison

Fr

amew

ork

deve

lope

d an

d im

plem

ente

d

Part

ners

hip

with

the

Uni

vers

ity o

f N

orth

Wes

t (U

NW

) to

reg

iste

r C

WP

part

icip

ants

with

m

atric

to

stud

y G

rade

R D

iplo

ma

– o

rient

atio

n m

eetin

gs h

eld

in F

ree

Sta

te, K

ZN a

nd N

orth

W

est in

Mar

ch 2

015 b

etw

een

part

icip

ants

and

U

NW

.

Part

ners

hip

with

Ilifa

La

Ban

twan

a ha

s be

en

impl

emen

ted

in the

Nor

th W

est Pr

ovin

ce a

nd

the

MO

U w

ith D

G M

urra

y Tr

ust ha

s be

en

sign

ed.

Part

ners

hip

with

Mso

bo M

ines

who

hav

e do

-na

ted

com

pute

r ce

ntre

in B

reyt

en in

Mpu

ma-

lang

a

Str

eet bi

ns a

nd s

kips

wer

e pu

rcha

sed

and

hand

ed o

ver

to the

Mah

iken

g Lo

cal M

unic

i-pa

lity

thro

ugh

DC

OG

Par

tner

ship

with

Jap

an

Inte

rnat

iona

l Coo

pera

tion

Age

ncy

(JIC

A)

for

impr

ovem

ent of

was

te m

anag

emen

t se

rvic

es.

--

New

CW

P In

sti-

tutio

nal a

rran

ge-

men

ts r

egar

ding

th

e de

liver

y an

d m

anag

emen

t of

C

WP

impl

emen

ted

by M

arch

201

5

New

inst

itutio

nal

arra

ngem

ents

fo

r C

WP

final

ized

an

d im

plem

ent-

ed b

y ta

rget

dat

e

Ach

ieve

d

New

inst

itutio

nal a

rran

gem

ent ha

s be

en

chan

ged

from

a thr

ee tie

r to

a o

ne tie

r im

ple-

men

tatio

n m

odel

.

The

IDT

has

been

app

oint

ed o

n an

inte

rim

basi

s to

man

age

the

MIS

and

pay

roll

syst

em.

--

Page 73: ANNUAL REPORT - COGTA

71

Chapter 2

Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

ap

ter

2 •

Pa

rt B

: DC

oG

Pe

rfo

rma

nce

Info

rma

tio

n

Str

ate

gic

O

bje

ctiv

e

Act

ua

l A

chie

vem

en

t 2

013

/14

Pla

nn

ed

Ta

rge

t 2

014

/15

Ind

ica

tors

A

ctu

al A

chie

vem

en

t 2

014

/15

De

via

tio

n

fro

m A

ctu

al

Ach

ieve

me

nt

Co

mm

en

t o

n

De

via

tio

ns

Effe

ctiv

e an

d ef

ficie

nt

man

agem

ent

and

adm

in-

istr

atio

n of

C

WP

Two

BD

F st

ruct

ures

w

ere

inst

ead

esta

b-lis

hed

in t

he C

acad

u an

d uM

gung

undl

ovu

DM

s.

Cat

alyt

ic B

usin

ess

Ven-

ture

s id

entifi

ed in

the

D

istr

ict

Mun

icip

aliti

es.

The

Uni

t is

pla

ying

a

pivo

tal r

ole

in a

ssis

ting

with

unb

lock

ing

bloc

k-ag

es in

the

iden

tified

pr

ojec

ts.

Proc

esse

s ar

e un

der-

way

to

faci

litat

e th

e co

mm

itmen

ts f

rom

th

e W

ater

berg

Dis

tric

t M

unic

ipal

ity a

nd P

rivat

e se

ctor

. Env

ironm

enta

l Sca

n to

und

erst

and

the

econ

omic

pro

files

of

the

tar

gete

d m

u-ni

cipa

litie

s ha

s be

en

deve

lope

d

CW

P Pa

rtne

rshi

p Sta

keho

lder

Rel

a-tio

ns M

anag

emen

t Fr

amew

ork

deve

l-op

ed b

y M

arch

201

5

MO

Us

sign

ed w

ith

iden

tified

par

tner

s an

d st

akeh

olde

rs

Part

ners

hip

fram

ewor

k fo

r C

WP

deve

lope

d by

tar

get da

te

Ach

ieve

d

CW

P Pa

rtne

rshi

p an

d Sta

keho

lder

Lia

ison

Fr

amew

ork

deve

lope

d an

d im

plem

ente

d

Part

ners

hip

with

the

Uni

vers

ity o

f N

orth

Wes

t (U

NW

) to

reg

iste

r C

WP

part

icip

ants

with

m

atric

to

stud

y G

rade

R D

iplo

ma

– o

rient

atio

n m

eetin

gs h

eld

in F

ree

Sta

te, K

ZN a

nd N

orth

W

est in

Mar

ch 2

015 b

etw

een

part

icip

ants

and

U

NW

.

Part

ners

hip

with

Ilifa

La

Ban

twan

a ha

s be

en

impl

emen

ted

in the

Nor

th W

est Pr

ovin

ce a

nd

the

MO

U w

ith D

G M

urra

y Tr

ust ha

s be

en

sign

ed.

Part

ners

hip

with

Mso

bo M

ines

who

hav

e do

-na

ted

com

pute

r ce

ntre

in B

reyt

en in

Mpu

ma-

lang

a

Str

eet bi

ns a

nd s

kips

wer

e pu

rcha

sed

and

hand

ed o

ver

to the

Mah

iken

g Lo

cal M

unic

i-pa

lity

thro

ugh

DC

OG

Par

tner

ship

with

Jap

an

Inte

rnat

iona

l Coo

pera

tion

Age

ncy

(JIC

A)

for

impr

ovem

ent of

was

te m

anag

emen

t se

rvic

es.

--

New

CW

P In

sti-

tutio

nal a

rran

ge-

men

ts r

egar

ding

th

e de

liver

y an

d m

anag

emen

t of

C

WP

impl

emen

ted

by M

arch

201

5

New

inst

itutio

nal

arra

ngem

ents

fo

r C

WP

final

ized

an

d im

plem

ent-

ed b

y ta

rget

dat

e

Ach

ieve

d

New

inst

itutio

nal a

rran

gem

ent ha

s be

en

chan

ged

from

a thr

ee tie

r to

a o

ne tie

r im

ple-

men

tatio

n m

odel

.

The

IDT

has

been

app

oint

ed o

n an

inte

rim

basi

s to

man

age

the

MIS

and

pay

roll

syst

em.

--

Str

ate

gic

O

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72

PR

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: IN

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rma

nce

Info

rma

tio

n

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Chapter 3 Part C: Governance

3

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3.1 Introduction

The Department regards good corporate governance as an effective mechanism for encouraging efficiency in its op-

erations, together with the prevention of corruption and combating fraud. It therefore continuously strives to achieve

compliance with the principles of good corporate governance and the requirements of KING III.

During the year under review the oversight structures, at executive level, were fully functional in providing direction on

the strategic management of the Department.

3.2 Risk ManagementRisk management is a continuous, proactive and sys-

tematic process, effected by the department’s Exec-

utive Authority, Accounting Officer, Management and

other personnel. This process is applied in strategic

planning and across the department, and is designed

to identify events that may potentially affect the depart-

ment. Risks identified are managed and monitored to

be within the department’s risk tolerance, and to pro-

vide reasonable assurance regarding the achievement

of department objectives.

The department has a risk management policy and

strategy in place which has been approved by the Ac-

counting Officer and is reviewed on a regular basis.

In line with the departmental risk management strate-

gy, annual risk assessments are conducted both at a

strategic and operational level. The assessments are

conducted in line with the strategic objectives of the

department. Management further identifies new and/

or emerging risks on a quarterly basis, and develops

mitigation measures for managing such risks.

The departmental risk management committee has

been established and is functional. The committee con-

venes once a quarter to review the effectiveness of the

risk management system and monitor the management

of risks, to ensure that they are minimised to an ac-

ceptable level or fully mitigated. Quarterly progress is

reported to management.

3.3 Fraud and Corruption

The Department has adequate and effective policies

and procedures in place to prevent, detect and ad-

dress acts of fraud and corruption. An assessment

of fraud and corruption risks is conducted in high

risk areas annually and monitored quarterly. Regular

awareness is raised within the Department on pre-

vention, detection and reporting of fraud and cor-

ruption.

The department has an approved Anti-Corruption

and Whistle Blowing Policy that has been communi-

cated to all employees. The reporting procedure has

also been developed and communicated within the

department.

Fraud and corruption allegations are reported by em-

ployees to Internal Audit unit or through the internal

anonymous fraud e-mail service or fraud reporting

boxes placed in all buildings of the department. Al-

legations reported are investigated, and appropriate

recommendations are submitted to the Accounting

Officer for action to be taken.

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3.4 Minimising Conflict of Interest

The Treasury Regulations 16A, 2005, provide guidelines

on how to manage conflict of interest and ensure proper

declarations are made by all Supply Chain Management

Practitioners as well as by other role players in supply

chain management processes. All Supply Chain Man-

agement Practitioners and bid committee members are

required to disclose their business interests every finan-

cial year, and also to sign the Code of Conduct in terms

of National Treasury Practice Number 4 of 2003, and 7

of 2009/2010. The Bid Committee members are always

requested to disclose the interest for each every bid/

tender that they are dealing with, and a record is kept

for audit purposes.

3.5 Code of ConductThe Public Service Code is a guiding document for the

good conduct of employees in the Department. The

Code of Conduct for the Public Service and the collective

agreement (PSCBC Resolution 1 of 2003) are import-

ant prescripts in the Department insofar as discipline is

concerned. It is endorsed by the PSCBC Resolution 1 of

2003. Annexure A of the resolution contains numerous

acts of misconduct which the Department outlaws and

complies with. It prescribes that an employee will be

guilty of misconduct if he or she “contravenes any pre-

scribed code of conduct in the Public Service”.

The Department complies with the Code in that it en-

forces the Code of Conduct. Any employee who con-

travenes or breaches the Code, as indicated in the Col-

lective Agreement (PSCBC Resolution 1 of 2003), is

guilty of misconduct. A disciplinary process is followed,

as indicated in the Collective Agreement, against any

employee who breaches or contravenes the code of

conduct in the Department.

3.6 Health Safety and Environmental Issues

The Occupational Health and Safety Programme, and

its activities within CoGTA, are guided by Workplace

Health and Safety legislation in RSA, namely the Oc-

cupational Health and Safety Act (OHS) and the DPSA

Framework on Employee Health and Wellness mat-

ters and other regulations. The OHS programme with-

in CoGTA is aimed at creating a healthy, hazard free

working environment for all its employees, visitors and

members of the public.

The following Workplace Health and Safety activities

were undertaken within CoGTA to ensure safe systems

of work, safe premises and a safe work environment:

§ The OHS Committee has been appointed in line with

the Occupational Health and Safety Act;

§ OHS Representatives were trained to identify haz-

ards and investigate incidents in the workplace;

§ First Aiders were trained and appointed to render

first aid during emergencies and minor injuries within

the Department;

§ Fire fighters were trained and appointed to deal with

fire incidents in the Department;

§ Evacuation/Emergency policy was developed and

approved;

§ Reports of injuries or occupational diseases are in-

vestigated periodically and reported as and when

they occur.

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3.7 Portfolio committees

3.7.1 Dates of Meetings

MEETINGS HELD BY THE COMMITTEE FOR 2014/15 FINANCIAL YEAR:

Date Agenda

24 June 2014 Election of Chairperson

1 July 2014 Presentation by the researcher of the analysis on Budget Vote 3: Department of Coop-erative Governance and Traditional Affairs

8 July 2014 Briefing by the Departments of Cooperative Governance and Traditional Affairs on Bud-get Vote 3: Department of Cooperative Governance and Traditional Affairs

15 July 2014 Discussion and adoption of the Committee’s report on Budget Vote 3

19 August 2014 Briefing by SALGA on its APP

26 August 2014 Meeting with the office supporting democracy on the CRL rights Commission

2 September 2014 Briefing on audit outcomes by :

• Office of the Auditor-General• Department of Cooperative Governance

9 September 2014 Briefing by the Department of Cooperative Governance and MISA on MIG

16 September 2014 Adoption of Committee minutes and programme

14 October 2014 Briefing by the Office of the Auditor-General on the performance of the Departments of Cooperative Governance and Traditional Affairs and the entities reporting to it

15 October 2014 Briefing on Annual Reports by:

• Department of Cooperative Governance;• Department of Traditional Affairs;

21 October 2014 Briefing on Annual Reports by:

• SALGA;• MDB

22 October 2014 Briefing on Annual Reports by:

• CRL Commission

28 October 2014 Discussion of BRRR Report

4 November 2014 Briefing by the Department of Traditional Affairs on roles and functions of traditional leaders

11 November 2014 Briefing on the roles and function of MISA

18 November 2014 Briefing by the Department of Cooperative Governance on the Integrated Urban Devel-opment Framework

24 February 2015 Briefing on the Disaster Management Amendment Bill [B10-2015]

3 March 2015 Briefing by the Departments of Cooperative Governance and Traditional Affairs on Bud-get Vote 4, strategic plan and APP

10 March 2015 Briefing by SALGA on it strategic plan and APP

17 March 2015 Briefing by CRL on its Annual Performance Plan

24 – 27 November 2014 Oversight visit to Limpopo Province

23 – 26 March 2015 SALGA Members Association

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3.7.2 Matters raised by the Portfolio Committee and the Department’s responses

Reporting matter Action required Timeframe

Suspension of the MDB CEO

Report to be provided to the Committee on progress in resolving the matter

Before Parliament rises

Monitoring and evaluation of municipalities

The Department should report to the Committee on a quarterly basis on their monitoring and evaluation of municipalities so that the Committee can address these challenges proactively.

Quarterly

Project Management Units The Department should present a plan to assist those munici-palities that do not have functional Project Management Units (PMUs) as well as a plan to address the use of conditional grant funding for non-approved purposes.

March 2015

Forensic reports The Department should provide the Committee access to all the forensic reports received from municipalities

March 2015

MISA The Department should report to the Committee on its plan to ensure that MISA is properly constituted

March 2015

3.8 SCOA Resolutions

Date Agenda

24 February 2015 Briefing by the Department of Cooperative Governance and the Municipal Infrastructure Support Agency on the progress of the support and interventions aimed at improving expen-diture and service delivery at local government level

10 September 2014 Presentation by Department of Health on First Quarter Expenditure report for 2014/15 finan-cial year

Presentation by Department of Cooperative Governance on First Quarter Expenditure report for 2014/15 financial year

3.9 Prior modifications to audit reports

Nature of qualification, disclaimer, adverse opinion and matters of non-compliance

Financial year in which it first arose

Progress made in clearing / resolving the matter

Unqualified audit opinion with an emphasis on the matter of measurability of indicators and targets as well as reliability of reported performance information.

2012/13 and 2013/ 14 Subsequent to the 2013/14 year-end audit, a Post Audit Action Plan was adopted in order to address the internal controls weaknesses identified by the Auditor general.

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3.10 Internal Audit Unit

During the 2014/15 financial year, Internal Audit devel-

oped a risk based Internal Audit Plan which was adopt-

ed and approved by the Audit Committee. The Internal

Audit Unit had serious capacity constraints during the

period under review, which impacted on the achieve-

ment of the operational plan. Nevertheless the Unit

conducted a number of internal audits and ad hoc as-

signments and provided recommendations for improve-

ment to the Department. The Unit also played a major

role in facilitating the MPAT process to ensure that the

Department complies with the key performance stan-

dards set by the Department of Performance Monitor-

ing and Evaluation. Internal Audit also assisted the De-

partment with the verification of irregular expenditure

to ensure that there is compliance with Supply Chain

Management policies and other relevant legislations

and prescripts, to ensure that irregular expenditure is

fully disclosed in the Annual Financial Statements. Fur-

thermore the Unit conducted site visits on the Com-

munity Work Programme in all provinces, to provide

management with reasonable assurance that the in-

ternal controls put in place are working as intended.

3.11 Internal Audit and Audit Committees

The Audit Committee is fully functional and meetings

were held regularly during the year to provide an over-

sight role on the operations of the Department and

the systems of corporate governance supporting the

achievement of the Department’s objectives. The Au-

dit Committee also met with the Executive Authority to

raise areas of concern that impact on the performance

of the department. The Audit Committee approved the

Internal Audit Three Year Strategic Rolling Plan for the

period 2013/14-2015/16 and the Annual Project plan,

which enabled the committee to monitor the perfor-

mance of the Internal Audit Section against the Internal

Audit Annual Project Plan.

3.12 Audit Committee Report inserted

We are pleased to present our report for the financial

year ended 31 March 2015.

3.12.1 Audit Committee Members and Attendance:

The Audit Committee consisted of the members listed

hereunder. The Committee is required to meet at least

four times per annum as per its approved terms of ref-

erence. Four (4) meetings were held for the reported

financial period.

Name of MemberNumber of Meetings Attended

Mr Freddy Sinthumule (Chairperson)

Mr E Cousins

4

3

Adv RR Dehal

Ms D Dondur

Ms P Mzizi

3

1

1

The Minister had also approved that the Audit Commit-

tee consist of a total of five (5) members. As a result

thereof Ms D Dondur and Ms P Mzizi were appointed in

September 2014 and February 2015 respectively.

3.12.2 Audit Committee Responsibility

The Audit Committee is satisfied that it has complied

with its responsibilities as outlined in Section 38(1) (a)

of the PFMA and Treasury Regulation 3.1.3. The Audit

Committee also reports that it has adopted formal terms

of reference as its audit committee charter, and has

discharged all its responsibilities as contained therein.

These will be reviewed and updated to conform and/

or comply with changes in governance/legislative re-

quirements.

Page 82: ANNUAL REPORT - COGTA

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3.12.3 The Effectiveness of Internal Control

During the period under review the Committee noted

the improvements made by management in addressing

the control environment and will continue to support

and monitor the progress until the Department’s control

environment has improved significantly to an accept-

able standard; the Committee notwithstanding raised

concerns regarding the monitoring and evaluation of

the Community Work Programme. The Department

subsequently was requested to strengthen the controls

and also address the effective and efficient filling of va-

cant staff positions wherever necessity demanded, in

order to safeguard operational success.

The Department also reviewed and concluded on irregu-

lar expenditure disbursements for the 2014/2015 finan-

cial year, and disclosed such in the irregular expenditure

register and financial statements. The outcome of the

current year’s MPAT review was further confirmation of

the Department’s efforts to internally instill a culture of

focused risk management. Internal Audit Activity assist-

ed the Department in facilitating the Risk Management

processes and in compiling the Risk Register.

The Audit Committee requested the Department to put

measures in place to encourage municipalities to uti-

lize the MIG Management Information System (MIS) in

managing and monitoring the MIG projects.

During the year under review the Committee met with

the Executive Authority and raised concerns with regard

to internal control deficiencies that required immediate

corrective action.

3.12.4 Effectiveness of Internal Audit

Internal Audit Management reported directly to the Au-

dit Committee, with Internal Audit also reporting inde-

pendently on the progress by management in imple-

menting the turn-around strategy plan to secure remedial

actions.

An approved three year risk based strategic plan and an

annual operation plan were implemented by the Internal

Audit Activity.

It must be noted that in the prior years the Internal Audit

Activity was supported by a service provider. However

during the current financial year the service provider was

not appointed which resulted in challenges in achiev-

ing the Internal Audit plan. National Treasury was sub-

sequently approached to assist with the Internal Audit

capacity. During January 2015 two (2) resources were

made available to assist with prioritized projects identi-

fied from plan.

Internal Audit also assisted the Department with the fol-

lowing Management ad hoc requests:-

§ Investigation on abuse of the travel policy. This investi-

gation has been finalized and report has been issued.

§ Investigation on the unsatisfactory service of a service

Provider. The investigation has been finalized and the

report has been issued.

§ Irregular payment on Resettlement costs. This inves-

tigation has been finalized and the report has been

issued.

§ Investigation into allegation of mismanagement of a

contract by a service provider. Fem Power. This inves-

tigation has been finalised and the report has been

issued.

§ Investigation of alleged unethical conduct by employ-

ee of the department that was reported on the Nation-

al Anti – Corruption Hotline (NACH). This investigation

has been finalized and reports issued to management

and the Public Service Commission (PSC).

Approval of a variation order from the procurement of

services from Data World. This investigation has been fi-

nalized and the report has been issued.

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3.12.5 Quality of Management and Monthly / Quarterly Reports Submitted in Terms of the Act and the Division of Revenue Act

The Department presented and reviewed the financial

management and performance (predetermined objec-

tives) reports at its Quarterly Review Meetings. These

reports were also tabled and discussed at the Audit

Committee meetings. The Committee was with a few

exceptions generally satisfied with the reports being

issued by the Accounting Officer and the Department

during the year under review.

3.12.6 Evaluation of Financial Statements

The Audit Committee has:

§ Reviewed the Annual Financial Statements prior to

submission for Audit;

§ Reviewed and discussed with the Auditor-General

and Accounting Officer the audited annual financial

statements to be included in the annual report; and

§ Reviewed the Auditor-General’s management letter

and management response.

The Committee concurs and accepts the conclusions of

the Auditor-General on the annual financial statements

and is of the opinion that the audited annual financial

statements be accepted and read together with the re-

port of the Auditor-General.

Mr Freddy Sinthumule

Chairperson of the Audit Committee: Department of

Cooperative Governance

31 August 2015

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Chapter 4 Part D: Human Resource

Management

4

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4.2 Human Resources Oversight StatisticsNo data

4.1 Introduction

The information contained in this part of the annual report has been prescribed by the Minister for the Public Service and

Administration for all departments in the public service and requests commentary on the following:

§ The status of human resources in the department.

§ Human resource priorities for the year under review and the impact of these.

§ Workforce planning and key strategies to attract and recruit a skilled and capable workforce.

§ Employee performance management.

§ Employee wellness programmes.

§ Highlights of achievements and challenges faced by the Department, as well as future human resource plans/goals.

4.3 Personnel related expenditureThe following tables summarises the final audited personnel related expenditure by programme and by salary bands. In

particular, it provides an indication of the following:

§ amount spent on personnel

§ amount spent on salaries, overtime, homeowner’s allowances and medical aid.

Table 4.3.1 Personnel expenditure by programme for the period 1 April 2014 and 31 March 2015

ProgrammeTotal expen-

diture (R’000)

Personnel expenditure

(R’000)

Training ex-penditure

(R’000)

Professional and Special

Services expenditure

(R’000)

Personnel expenditure

as a % of total expenditure

Average per-sonnel cost

per employee (R’000)

0 0 0 0 0 0

0 0 0 0 0 0

Total

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Tab

le 4

.3.2

P

ers

on

ne

l co

sts

by

sala

ry b

an

d f

or

the

pe

rio

d 1

Ap

ril 2

014

an

d 3

1 M

arc

h 2

015

Sala

ry b

and

Pers

onne

l exp

end

itu

re

(R’0

00)

% o

f tot

al p

erso

nnel

cos

tN

o. o

f em

plo

yees

Ave

rag

e p

erso

nnel

cos

t p

er e

mp

loye

e (R

’000

)

Low

er s

kille

d (L

evel

s 1-2

)0

00

0

Ski

lled

(leve

l 3-5

)0

00

0

Hig

hly

skill

ed p

rodu

ctio

n (le

vels

6-8

)0

00

0

Hig

hly

skill

ed s

uper

visi

on (

leve

ls 9

-12)

00

00

Sen

ior

and

Top

man

agem

ent

(leve

ls 1

3-1

6)

00

00

Tota

l0

00

0

Tab

le 4

.3.3

S

ala

rie

s, O

vert

ime

, Ho

me

Ow

ne

rs A

llo

wa

nce

an

d M

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ica

l Aid

by

pro

gra

mm

e f

or

the

p

eri

od

1 A

pri

l 20

14 a

nd

31

Ma

rch

20

15

Prog

ram

me

Sala

ries

Ove

rtim

e H

ome

Ow

ners

All

owan

ce M

edic

al A

id

Am

ount

(R

’000

Sala

ries

as

a %

of p

erso

n-ne

l cos

ts

Am

ount

(R

’000

)

Ove

rtim

e as

a %

of

per

sonn

el

cost

s

Am

ount

(R

’000

)

HO

A a

s a

%

of p

erso

nnel

co

sts

Am

ount

(R

’000

)

Med

ical

aid

as

a %

of

per

sonn

el

cost

s

00

00

00

00

00

00

00

00

Tota

l0

00

00

00

0

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Tab

le 4

.3.4

S

ala

rie

s, O

vert

ime

, Ho

me

Ow

ne

rs A

llo

wa

nce

an

d M

ed

ica

l Aid

by

sala

ry b

an

d f

or

the

p

eri

od

1 A

pri

l 20

14 a

nd

31

Ma

rch

20

15

Sala

ry b

and

Sala

ries

Ove

rtim

eH

ome

Ow

ners

All

owan

ceM

edic

al A

id

Am

ount

(R

’000

Sala

ries

as

a %

of p

erso

n-ne

l cos

ts

Am

ount

(R

’000

)

Ove

rtim

e as

a

% o

f per

-so

nnel

cos

ts

Am

ount

(R

’000

)

HO

A a

s a

%

of p

erso

nnel

co

sts

Am

ount

(R

’000

)

Med

ical

aid

as

a %

of

per

sonn

el

cost

s

Ski

lled

(leve

l 1-2

) 0

00

00

00

0

Ski

lled

(leve

l 3-5

) 0

00

00

00

0

Hig

hly

skill

ed p

rodu

ctio

n (le

vels

6-8

)0

00

00

00

0

Hig

hly

skill

ed s

uper

visi

on (

leve

ls 9

-12

00

00

00

00

Sen

ior

man

agem

ent

(leve

l 13-1

6)

00

00

00

00

Tota

l0

00

00

00

0 4.4 Employment and Vacancies

The tables in this section summarise the position with

regard to employment and vacancies.

The following tables summarise the number of posts

on the establishment, the number of employees, the

vacancy rate, and whether there are any staff that are

additional to the establishment.

This information is presented in terms of three key vari-

ables:

§ programme

§ salary band

§ critical occupations (see definition in notes below).

Departments have identified critical occupations that

need to be monitored. In terms of current regulations,

it is possible to create a post on the establishment that

can be occupied by more than one employee. There-

fore, the vacancy rate reflects the percentage of posts

that are not filled.

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Table 4.4.1 Employment and vacancies by programme as on 31 March 2015

Programme

Number of posts on

approved establish ment

Number of posts filled

Vacancy Rate

Number of employees ad-ditional to the establishment

Program 1 Administration 237 216 8.9 48

Program 2 Gov Policy & Research 11 10 9.1 10

Program 3 Gov & Intergovernmental Relations 41 36 12.2 1

Program 4 National Disaster Management Centre

34 32 5.9 0

Program 5 Provincial and Municipal Gov Support

47 41 12.8 0

Program 6 Infrastructure and Economic Development

52 36 30.8 27

Programme 7 Municipal Infrastructure Support Agent

29 23 20.7 4

Total 451 394 12.6 80

Table 4.4.2 Employment and vacancies by salary band as on 31 March 2015

Salary bandNumber of posts

on approved establishment

Number of posts filled

Vacancy Rate

Number of employees

additional to the establishment

Skilled(3-5) 50 49 2 24

Highly skilled production (6-8) 132 119 9.8 9

Highly skilled supervision (9-12) 152 121 20.4 14

Senior management (13-16) 117 105 10.3 33

Total 451 394 12.6 80

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Table 4.4.3 Employment and vacancies by critical occupations as on 31 March 2015

Critical occupationNumber of posts

on approved establishment

Number of posts filled

Vacancy Rate

Number of employees

additional to the establishment

Senior management (Levels 13-16)

117 105 10.3 33

Total 117 105 10.3 33

NOTES

4.5 Filling of SMS PostsThe tables in this section provide information on employment and vacancies as it relates to members of the Senior

Management Service by salary level. It also provides information on advertising and filling of SMS posts, reasons

for not complying with prescribed timeframes and disciplinary steps taken.

Table 4.5.1 SMS post information as on 31 March 2015

SMS Level

Total number of

funded SMS posts

Total number of SMS posts

filled

% of SMS posts filled

Total number of SMS posts

vacant

% of SMS posts vacant

Director-General/ Head of Department 1 1 100 0 0

Salary Level 16 0 0 0 0 0

Salary Level 15 11 6 55 5 45

Salary Level 14 31 28 90 3 9.6

Salary Level 13 74 70 95 4 5.4

Total 117 105 90 12 10.3

§ The CORE classification, as prescribed by the

DPSA, should be used for completion of this table.

§ Critical occupations are defined as occupations or

sub-categories within an occupation –

a) in which there is a scarcity of qualified and

experienced persons currently or anticipated in

the future, either because such skilled persons

are not available or they are available but do not

meet the applicable employment criteria;

b) for which persons require advanced knowledge in a spec-

ified subject area or science or learning field and such

knowledge is acquired by a prolonged course or study

and/or specialised instruction;

c) where the inherent nature of the occupation requires con-

sistent exercise of discretion and is predominantly intellec-

tual in nature; and

d) in respect of which a department experiences a high degree

of difficulty to recruit or retain the services of employees.

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Table 4.5.2 SMS post information as on 30 September 2014

SMS Level

Total number of

funded SMS posts

Total number of SMS posts

filled

% of SMS posts filled

Total number of SMS posts

vacant

% of SMS posts vacant

Director-General/ Head of Department 2 1 50 1 50

Salary Level 16 0 0 0 0 0

Salary Level 15 10 7 70 3 30

Salary Level 14 31 29 97 2 3.2

Salary Level 13 74 69 93 5 6.8

Total 117 106 11

Table 4.5.3 Advertising and filling of SMS posts for the period 1 April 2014 and 31 March 2015

SMS Level

Advertising Filling of Posts

Number of vacancies per level advertised in 6

months of becoming vacant

Number of vacancies per level filled in 6 months of

becoming vacant

Number of vacancies per level not filled in 6 months

but filled in 12 months

Director-General/ Head of Department

0 0 0

Salary Level 16 0 0 0

Salary Level 15 0 0 0

Salary Level 14 0 0 0

Salary Level 13 4 0 2

Total 4 0 2

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Table 4.5.4 Reasons for not having complied with the filling of funded vacant SMS posts - Advertised within 6 months and filled within 12 months after becoming vacant for the period 1 April 2014 and 31 March 2015

Reasons for vacancies not advertised within six months

The filling of the posts were suspended in anticipation of the deliberations with the Department of Public Service and Administration on the new structure.

Reasons for vacancies not filled within twelve months

The filling of the posts of Chief Executive Officer, 3 Deputy Director- General: MISA, Deputy Director-General: Corporate and Financial Services, Chief Director: Monitoring and Evaluation, Chief Director: Communication and Marketing and Director: Executive Support, were suspended pending the finalisation of the re-alignment of the organisational structure.

The posts of Director: Office of the Deputy Director-General, Provincial and Municipal Government Support and Director: Local Participatory Governance were finalised on 31 March 2014 with the assumption of duty of 1 April 2015. The post of Director: Planning Intervention and Support is in the process of finalisation.

NOTES § In terms of the Public Service Regulations Chapter 1, Part VII C.1A.3, departments must indicate good cause or reason

for not having complied with the filling of SMS posts within the prescribed timeframes.

Table 4.5.5 Disciplinary steps taken for not complying with the prescribed timeframes for filling SMS posts within 12 months for the period 1 April 2014 and 31 March 2015

Disciplinary steps taken

No disciplinary steps required since there are legitimate reasons for the delay with the filling of SMS posts.

NOTES § In terms of the Public Service Regulations Chapter 1, Part VII C.1A.2, departments must indicate good cause or reason

for not having complied with the filling of SMS posts within the prescribed timeframes. In the event of non-compli-

ance with this regulation, the relevant executive authority or head of department must take appropriate disciplinary

steps in terms of section 16A(1) or (2) of the Public Service Act.

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4.6 Job EvaluationWithin a nationally determined framework, executing authorities may evaluate or re-evaluate any job in his or her

organisation. In terms of the Regulations all vacancies on salary levels 9 and higher must be evaluated before they

are filled. The following table summarises the number of jobs that were evaluated during the year under review.

The table also provides statistics on the number of posts that were upgraded or downgraded.

Table 4.6.1 Job Evaluation by Salary band for the period 1 April 2014 and 31 March 2015

Salary band

Number of posts on

approved establish-

ment

Number of Jobs

Evaluated

% of posts evaluated by salary

bands

Posts Upgraded Posts downgraded

Number% of posts evaluated

Number% of posts evaluated

Skilled (Levels 3-5)

50 0 0

Highly skilled production (Levels 6-8)

132 33 25 0 0 0 0

Highly skilled supervision (Levels 9-12)

152 57 37.5 0 0 0 0

Senior Management Service Band A

74 2 2.7 0 0 0 0

Senior Management Service Band B

31 1 3.2 0 0 0 0

Senior Management Service Band C

11 2 18.2 0 0 0 0

Senior Management Service Band D

1 0 0 0 0 0 0

Total 451 95 21.1 0 0 0 0

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The following table provides a summary of the number of employees whose positions were upgraded due to their

post being upgraded. The number of employees might differ from the number of posts upgraded since not all

employees are automatically absorbed into the new posts and some of the posts upgraded could also be vacant.

Table 4.6.2 Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2014 and 31 March 2015Gender African Asian Coloured White Total

Female 0 0 0 0 0

Male 0 0 0 0 0

Total 0 0 0 0 0

Employees with a disability 0 0 0 0 0

The following table summarises the number of cases where remuneration bands exceeded the grade determined

by job evaluation. Reasons for the deviation are provided in each case.

Table 4.6.3 Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April 2014 and 31 March 2015

OccupationNumber of employees

Job evalua-tion level

Remunera-tion level

Reason for deviation

Chief Operating Officer 1 15 16 Buy Offer

Chief Director 1 14 15 Buy Offer

Total number of employees whose salaries exceeded the level determined by job evaluation 2

Percentage of total employed 0.75

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The following table summarises the beneficiaries of the above in terms of race, gender, and disability.

Table 4.6.4 Profile of employees who have salary levels higher than those determined by job evaluation for the period 1 April 2014 and 31 March 2015

Gender African Asian Coloured White Total

Female 2 0 0 0 2

Male 0 0 0 0 0

Total 2 0 0 0 2

Employees with a disability 0

NOTES § If there were no cases where the salary levels were higher than those determined by job evaluation, keep the heading

and replace the table with the following:

Total number of Employees whose salaries exceeded the grades determine by job evaluation None

4.7 Employment ChangesThis section provides information on changes in employment over the financial year. Turnover rates provide an

indication of trends in the employment profile of the department. The following tables provide a summary of turn-

over rates by salary band and critical occupations (see definition in notes below).

Table 4.7.1 Table 4.7.1 Annual turnover rates by salary band for the period 1 April 2014 and 31 March 2015

Salary band

Number of employees at be-ginning of period

- April 2014

Appointments and transfers

into the department

Terminations and transfers out of the de-

partment

Turnover rate

Skilled (Levels3-5) 93 7 8 8.6

Highly skilled production (Levels 6-8) 151 18 14 9.3

Highly skilled supervision (Levels 9-12) 142 20 13 9.2

Senior Management Service Bands A 103 5 5 4.9

Senior Management Service Bands B 51 0 3 5.9

Senior Management Service Bands C 11 0 1 9.1

Senior Management Service Bands D 2 0 0 0

Contracts 7 48

Total 553 57 92 16.6

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Table 4.7.2 Annual turnover rates by critical occupation for the period 1 April 2014 and 31 March 2015

Critical occupation

Number of employees

at beginning of period - April 2014

Appoint-ments and

transfers into the depart-

ment

Terminations and transfers

out of the department

Turnover rate

Senior Management Service (Levels 13-16) 126 5 9 11.1

Total 126 5 9 7.1

NOTES § The CORE classification, as prescribed by the DPSA, should be used for completion of this table.

§ Critical occupations are defined as occupations or

sub-categories within an occupation –

a) in which there is a scarcity of qualified and

experienced persons currently or anticipated in

the future, either because such skilled persons

are not available or they are available but do not

meet the applicable employment criteria;

b) for which persons require advanced knowledge

in a specified subject area or science or learn-

ing field and such knowledge is acquired by a prolonged

course or study and/or specialised instruction;

c) where the inherent nature of the occupation requires con-

sistent exercise of discretion and is predominantly intellec-

tual in nature; and

d) in respect of which a department experiences a high degree

of difficulty to recruit or retain the services of employees.

The table below identifies the major reasons why staff left the

department.

Table 4.7.3 Reasons why staff left the department for the period 1 April 2014 and 31 March 2015

Termination Type Number % of Total Resignations

Death 1 1

Resignation 31 34

Expiry of contract 48 52

Dismissal – operational changes 0 0

Dismissal – misconduct 1 1

Dismissal – inefficiency 0 0

Discharged due to ill-health 0 0

Retirement 0 0

Transfer to other Public Service Departments 11 12

Other 0

Total 92 100

Total number of employees who left as a % of total employment 16.6

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Table 4.7.4 Promotions by critical occupation for the period 1 April 2014 and 31 March 2015

OccupationEmployees 1

April 2014

Promotions to another

salary level

Salary level promotions

as a % of employees by

occupation

Progressions to another

notch within a salary level

Notch progression

as a % of employees by

occupation

Senior Management Service (Levels 13-16)

0 0 0 0 0

Total 0 0 0 0 0

Table 4.7.5 Promotions by salary band for the period 1 April 2014 and 31 March 2015

Salary BandEmployees 1 April 2014

Promotions to another

salary level

Salary bands promotions

as a % of employees by

salary level

Progressions to another

notch within a salary level

Notch progression

as a % of employees by salary bands

Skilled (Levels3-5)

93 0 0 21 22.6

Highly skilled production (Levels 6-8)

151 2 1.3 116 76.8

Highly skilled supervision (Levels 9-12)

142 16 11.3 92 64.8

Senior Management (Level 13-16)

167 0 0 99 59.2

Total 553 18 3.2 328 59.3

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4.8 Employment Equity 4

Table 4.8.1 Total number of 831 employees (including employees with disabilities) in each of the following occupational categories as on 31 March 2015

Occupational categoryMale Female

TotalAfrican Coloured Indian White African Coloured Indian White

Legislators, senior officials and managers

117 4 3 9 115 6 2 16 272

Professionals 0 0 0 0 0 0 0 0 0

Technicians and associate professionals

0 0 0 0 0 0 0 0 0

Clerks 49 0 3 1 88 1 1 11 154

Service and sales workers 0 0 0 0 0 0 0 0 0

Skilled agriculture and fish-ery workers

0 0 0 0 0 0 0 0 0

Craft and related trades workers

0 0 0 0 0 0 0 0 0

Plant and machine operators and assemblers

0 0 0 0 0 0 0 0 0

Elementary occupations 35 0 0 0 13 0 0 0 48

Total 201 4 6 10 216 7 3 27 474

Employees with disabilities 1 0 0 1 1 1 0 1 0

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Table 4.8.2 Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2015

Occupational bandMale Female

TotalAfrican Coloured Indian White African Coloured Indian White

Top Management 4 0 0 1 1 0 1 0 7

Senior Management 56 3 1 5 51 2 1 11 130

Professionally qualified and experienced specialists and mid-management

57 1 2 3 63 4 0 5 135

Skilled technical and academ-ically qualified workers, junior management, supervisors, foreman and superintendents

34 0 3 1 78 1 1 11 129

Semi-skilled and discretionary decision making

15 0 0 0 10 0 0 0 25

Unskilled and defined decision making

35 0 0 0 13 0 0 0 48

Total 201 4 6 10 216 7 3 27 474

Table 4.8.3 Recruitment for the period 1 April 2014 to 31 March 2015

Occupational bandMale Female

TotalAfrican Coloured Indian White African Coloured Indian White

Top Management 0 0 0 0 0 0 0 0 0

Senior Management 4 0 0 0 3 0 0 0 7

Professionally qualified and experienced specialists and mid-management

12 0 0 0 11 1 0 0 24

Skilled technical and academ-ically qualified workers, junior management, supervisors, foreman and superintendents

5 0 0 0 14 0 0 0 19

Semi-skilled and discretionary decision making

4 0 0 0 0 0 0 0 4

Unskilled and defined decision making

1 0 0 0 2 0 0 0 3

Total 26 0 0 0 30 1 0 0 57

Employees with disabilities 0 0 0 0 0 0 0 0 0

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Table 4.8.4 Promotions for the period 1 April 2014 to 31 March 2015

Occupational bandMale Female

TotalAfrican Coloured Indian White African Coloured Indian White

Top Management 0 0 0 0 0 0 0 0 0

Senior Management 0 0 0 0 0 0 0 0 0

Professionally qualified and experienced specialists and mid-management

6 0 0 0 9 0 0 1 16

Skilled technical and academ-ically qualified workers, junior management, supervisors, foremae and superintendents

0 0 0 0 2 0 0 0 2

Semi-skilled and discretionary decision making

0 0 0 0 0 0 0 0 0

Unskilled and defined decision making

0 0 0 0 0 0 0 0 0

Total 6 0 0 0 11 0 0 1 18

Employees with disabilities 0 0 0 0 0 0 0 0 0

Table 4.8.5 Terminations for the period 1 April 2014 to 31 March 2015

Occupational bandMale Female

TotalAfrican Coloured Indian White African Coloured Indian White

Top Management 1 0 0 0 0 0 0 0 1

Senior Management 7 1 0 0 3 0 1 0 12

Professionally qualified and experienced specialists and mid-management

9 1 1 0 8 0 0 0 19

Skilled technical and academ-ically qualified workers, junior management, supervisors, fore-men and superintendents

8 0 0 0 11 0 0 0 19

Semi-skilled and discretionary decision making

3 0 0 0 2 0 0 0 5

Unskilled and defined decision making

31 0 0 0 5 0 0 0 36

Total 59 2 1 0 29 0 1 0 92

Employees with Disabilities 0 0 0 0 0 0 0 0 0

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Table 4.8.6 Disciplinary action for the period 1 April 2014 to 31 March 2015

Disciplinary actionMale Female

TotalAfrican Coloured Indian White African Coloured Indian White

Irregular procurement pro-cess

2 0 0 0 0 0 0 0 2

Fraud and dishonesty 0 0 0 0 1 0 0 0 1

Mismanagement of state funds

0 1 0 0 0 0 0 0 1

Negligence 0 0 0 0 1 0 0 0 1

Financial and negligence 2 0 0 0 0 0 0 1 3

Misrepresentation 1 0 0 0 0 0 0 0 1

Refusing lawful instruction 1 0 0 0 0 0 0 0 1

Corruption 1 0 0 0 1 0 0 0 2

Table 4.8.7 Skills development for the period 1 April 2014 to 31 March 2015

Occupational categoryMale Female

TotalAfrican Coloured Indian White African Coloured Indian White

Legislators, senior officials and managers

8 0 1 2 20 2 0 8 41

Professionals 13 1 0 1 10 0 0 0 25

Technicians and associate professionals

29 0 0 0 36 1 1 5 72

Clerks 14 0 0 0 40 1 0 1 56

Service and sales workers 25 0 0 0 8 0 0 0 33

Skilled agriculture and fishery workers

0 0 0 0 0 0 0 0 0

Craft and related trades work-ers

0 0 0 0 0 0 0 0 0

Plant and machine operators and assemblers

0 0 0 0 0 0 0 0 0

Elementary occupations 2 0 0 0 0 0 0 0 2

Total 91 1 1 3 114 4 1 14 229

Employees with disabilities 0 0 0 0 0 0 0 0 0

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4.9 Signing of Performance Agreements by SMS Members

All members of the SMS must conclude and sign performance agreements within specific timeframes. Information regarding

the signing of performance agreements by SMS members, the reasons for not complying within the prescribed timeframes

and disciplinary steps taken is presented here.

Table 4.9.1 Signing of Performance Agreements by SMS members as on 31 May 2014

SMS LevelTotal number

of funded SMS posts

Total number of SMS

members

Total number of signed performance

agreements

Signed performance agreements as % of total number of SMS

members

Director-General/ Head of Department

0 1 1 100

Salary Level 16 0 1 1 100

Salary Level 15 0 9 9 100

Salary Level 14 0 45 41 91

Salary Level 13 0 85 85 100

Total 0 141 137 97

NOTES § In the event of a National or Provincial election occurring within the first three months of a financial year all members

of the SMS must conclude and sign their performance agreements for that financial year within three months follow-

ing the month in which the elections took place. For example if elections took place in April, the reporting date in the

heading of the table above should change to 31 July 2014.

Table 4.9.2 Reasons for not having concluded Performance agreements for all SMS members as on 31 March 2015

Reasons

NOTES § The reporting date in the heading of this table should be aligned with that of Table 3.7.1.

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Table 4.9.3 Disciplinary steps taken against SMS members for not having concluded Performance agreements as on 31 March 2015

Reasons

NOTES § The reporting date in the heading of this table should be aligned with that of Table 3.7.1.

4.10 Performance Rewards

To encourage good performance, the department has granted the following performance rewards during the year

under review. The information is presented in terms of race, gender, disability, salary bands and critical occupa-

tions (see definition in notes below).

Table 4.10.1 Performance Rewards by race, gender and disability for the period 1 April 2014 to 31 March 2015

Race and Gender

Beneficiary Profile Cost

Number of beneficiaries

Number of em-ployees

% of total within group

Cost (R’000)Average cost per

employee

African 351 424 83 1 695 873 4 831

Male 182 218 83 802 322 4 408

Female 169 206 82 893 551 5 287

Asian 8 8 100 272 314 34 039

Male 5 5 100 129 759 25 951

Female 3 3 100 142 555 47 518

Coloured 9 9 100 95 042 10 560

Male 6 6 100 28 462 4 743

Female 3 3 100 66 580 22 193

White 34 35 97 340 369 10 101

Male 9 10 90 116 592 12 954

Female 25 25 100 223 777 8 951

Total 402 476 85 2 403 598 5 979

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Table 4.10.2 Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2014 to 31 March 2015

Salary band

Beneficiary Profile Cost Total cost as a % of the total

personnel expenditure

Number of beneficiaries

Number of employees

% of total within salary

bands

Total Cost (R’000)

Average cost per employee

Skilled (level 3-5)

79 95 83 54 482 4 953 0

Highly skilled production (level 6-8)

114 135 84 397 166 9 456 0

Highly skilled supervision (level 9-12)

88 105 84 641 163 17329 0

Total 281 335 84 1 092 811 12 142.34 0

Table 4.10.3 Performance Rewards by critical occupation for the period 1 April 2014 to 31 March 2015

Critical occupa-tion

Beneficiary Profile Cost

Number of beneficiaries

Number of employees

% of total within occupation

Total Cost (R’000)

Average cost per employee

0 0 0 0 0

Total 0 0 0 0 0

NOTES § The CORE classification, as prescribed by the

DPSA, should be used for completion of this table.

§ Critical occupations are defined as occupations or

sub-categories within an occupation –

a) in which there is a scarcity of qualified and

experienced persons currently or anticipated in

the future, either because such skilled persons

are not available or they are available but do

not meet the applicable employment criteria;

b) for which persons require advanced knowledge in a

specified subject area or science or learning field and

such knowledge is acquired by a prolonged course or

study and/or specialised instruction;

c) where the inherent nature of the occupation requires

consistent exercise of discretion and is predominantly

intellectual in nature; and

d) in respect of which a department experiences a high

degree of difficulty to recruit or retain the services of

employees;

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Table 4.10.4 Performance related rewards (cash bonus), by salary band for Senior Management Service for the period 1 April 2014 to 31 March 2015

Salary band

Beneficiary Profile Cost Total cost as a % of the total

personnel expenditure

Number of beneficiaries

Number of employees

% of total with-in salary bands

Total Cost (R’000)

Average cost per employee

Band A 20 85 24 1 054 319 52 716

Band B 2 45 4 133 482 66 741

Band C 2 9 22 116 262 58 131

Band D 0 1 0 - - -

Total 24 140 17 1 304 063 54 335.95

4.11 Foreign Workers

The tables below summarise the employment of foreign nationals in the department in terms of salary band and

major occupation.

Table 4.11.1 Foreign workers by salary band for the period 1 April 2014 and 31 March 2015

Salary band01 April 2014 31 March 2015 Change

Number % of total Number Number % of total Number

Senior Management Service (Levels 13-16)

1 100 1 100 0 0

Total 1 100 1 100 0 0

Table 4.11.2 Foreign workers by major occupation for the period 1 April 2014 and 31 March 2015

Major occupation01 April 2014 31 March 2015 Change

Number % of total Number % of total Number % Change

Professionals and Manager 1 100 1 100 0 0

Total 1 100 1 100 0 0

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4.12 Leave utilisation The Public Service Commission identified the need for careful monitoring of sick leave within the public service.

The following tables provide an indication of the use of sick leave and disability leave. In both cases, the estimated

cost of the leave is also provided.

Table 4.12.1 Sick leave for the period 1 January 2014 to 31 December 2014

Salary bandTotal days

% Days with Medical

certification

Number of Employees using sick

leave

% of total employees using sick

leave

Average days per

employee

Estimated Cost

(R’000)

Skilled (levels 3-5) 364 75 64 14.6 6 199

Highly skilled production (levels 6-8)

906 74.3 131 29.9 7 843

Highly skilled supervision (levels 9 -12)

840 75.1 129 29.4 6 1 600

Top and Senior manage-ment (levels 13-16)

670 80.9 114 26.1 6 2 294

Total 2 780 76.2 438 100 6 4 936

Table 4.12.2 Incapacity leave (temporary and permanent) for the period 1 January 2014 to 31 December 2014

Salary bandTotal days

% Days with Medical

certification

Number of Employees

using disability leave

% of total employees

using disability leave

Average days per

employee

Estimated Cost

(R’000)

Skilled (Levels 3-5) 15 100 2 22.2 8 10

Highly skilled produc-tion (Levels 6-8)

82 100 4 33.3 21 88

Highly skilled super-vision (Levels 9-12)

0 0 0 0 0 0

Senior management (Levels 13-16)

9 100 3 44.4 3 32

Total 106 100 9 100 12 130

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The table below summarises the utilisation of annual leave. The wage agreement concluded with trade unions in the

PSCBC in 2000 requires management of annual leave to prevent high levels of accrued leave being paid at the time of

termination of service.

Table 4.12.3 Annual Leave for the period 1 January 2014 to 31 December 2014

Salary band Total days takenNumber of Employees

using annual leaveAverage per

employee

Skilled Levels 3-5) 1 878 94 20

Highly skilled production (Levels 6-8) 3 440 161 21

Highly skilled supervision(Levels 9-12) 3 596 164 22

Senior management (Levels 13-16) 3 890 181 21

Total 12 804 600 21

Table 4.12.4 Capped leave for the period 1 January 2014 to 31 December 2014

Salary bandTotal days of capped leave

taken

Number of Employees

using capped leave

Average number of

days taken per employee

Average capped leave per employee as at 31 March 20ZZ

Skilled Levels 3-5) 1 1 1 39

Highly skilled production (Levels 6-8) 0 0 0 0

Highly skilled supervision (Levels 9-12) 10 2 5 38

Senior management (Levels 13-16) 0 0 0 49

Total 11 3 4 43

The following table summarise payments made to employees as a result of leave that was not taken.

Table 4.12.5 Leave payouts for the period 1 April 2014 and 31 March 2015

ReasonTotal

amount (R’000)

Number of employees

Average per employee

(R’000)

Leave payout for 2014/15 due to non-utilisation of leave for the previous cycle

0 0 0

Capped leave payouts on termination of service for 2014/15 0 0 0

Current leave payout on termination of service for 2014/15 780 47 16 595

Total 780 47 16 595

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4.13 HIV/AIDS & Health Promotion Programmes

Table 4.13.1 Steps taken to reduce the risk of occupational exposureUnits/categories of employees identified to be at

high risk of contracting HIV & related diseases (if any) Key steps taken to reduce the risk

All staff Employee Health and Wellness Programme

Employee Assistance Programme policy and guidelines

Table 4.13.2 Details of Health Promotion and HIV/AIDS Programmes (tick the applicable boxes and provide the required information)

Question Yes No Details, if yes

1. Has the department designated a member of the SMS to implement the provisions contained in Part VI E of Chapter 1 of the Public Service Regulations, 2001? If so, provide her/his name and position.

√ Mr Sonwabo Shibane, Senior Manager Organisational Development.

2. Does the department have a dedicated unit or has it des-ignated specific staff members to promote the health and well-being of your employees? If so, indicate the number of employees who are involved in this task and the annual budget that is available for this purpose.

√ 1 Assistant Director, 1 Administration Clerk, Budget of R 650 000.

3. Has the department introduced an Employee Assistance or Health Promotion Programme for your employees? If so, indicate the key elements/services of this Programme.

√ Psycho-social support counselling, wellness day for health screenings, HIV testing and Awareness, sport activities, financial wellness.

4. Has the department established (a) committee(s) as contemplated in Part VI E.5 (e) of Chapter 1 of the Public Service Regulations, 2001? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent.

5. Has the department reviewed its employment policies and practices to ensure that these do not unfairly discriminate against employees on the basis of their HIV status? If so, list the employment policies/practices so reviewed.

√ The Department’s Employment Equity policy does not discriminate against em-ployees on the basis of their HIV status.

6. Has the department introduced measures to protect HIV-positive employees or those perceived to be HIV-pos-itive from discrimination? If so, list the key elements of these measures.

√ Departmental HIV and AIDS approved policy makes provision for employees not to be discriminated against based on HIV status. Disciplinary and grievance proce-dure are in place to counter against those discriminating on the basis of HIV status.

7. Does the department encourage its employees to undergo Voluntary Counselling and Testing? If so, list the results that you have you achieved.

√ Through bi-annual Health assessment and VCT screening and annual wellness day and referrals for counselling.

8. Has the department developed measures/indicators to monitor & evaluate the impact of its health promotion pro-gramme? If so, list these measures/indicators.

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4.14 Labour Relations

Table 4.14.1 Collective agreements for the period 1 April 2014 and 31 March 2015

Subject matter Date

No collective agreements finalised during the 2014/15 financial year

NOTES § If there were no agreements, keep the heading and replace the table with the following:

Total number of Collective agreements None

The following table summarises the outcome of disciplinary hearings conducted within the department for the

year under review.

Table 4.14.2 Misconduct and disciplinary hearings finalised for the period 1 April 2014 and 31 March 2015Outcomes of disciplinary hearings Number % of total

Correctional counselling 0 0

Verbal warning 0 0

Written warning 4 57

Final written warning 0 0

Suspended without pay 0 0

Fine 0 0

Demotion 0 0

Dismissal 2 29

Not guilty 1 14

Case withdrawn 0 0

Total 7 100

NOTES § If there were no agreements, keep the heading and replace the table with the following:

Total number of Disciplinary hearings finalised 2

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Table 4.14.3 Types of misconduct addressed at disciplinary hearings for the period 1 April 2014 and 31 March 2015

Type of misconduct Number % of total

Irregularity on procurement 2 75

Fraud 1 25

Total 3 100

Table 4.14.4 Table 4.14.4 Grievances logged for the period 1 April 2014 and 31 March 2015

Grievances Number % of Total

Number of grievances resolved 2 40

Number of grievances not resolved 3 60

Total number of grievances lodged 5 100

Table 4.14.5 Disputes logged with Councils for the period 1 April 2014 and 31 March 2015

Disputes Number % of Total

Number of disputes upheld 0 0

Number of disputes dismissed 0 0

Total number of disputes lodged 0 0

Table 4.14.6 Strike actions for the period 1 April 2014 and 31 March 2015

Total number of persons working days lost 0

Total costs working days lost 0

Amount recovered as a result of no work no pay (R’000) 0

Table 4.14.7 Precautionary suspensions for the period 1 April 2014 and 31 March 2015

Number of people suspended 1

Number of people whose suspension exceeded 30 days 0

Average number of days suspended 30

Cost of suspension (R’000) 82

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4.15 Skills development

This section highlights the efforts of the department with regard to skills development.

Table 4.15.1 Training needs identified for the period 1 April 2014 and 31 March 2015

Occupational category

GenderNumber of

employees as at 1 April 2014

Training needs identified at start of the reporting period

Learnerships

Skills Programmes & other short

courses

Other forms of training

Total

Legislators, senior of-ficials and managers

Female 0 0 0 0 0

Male 0 0 0 0 0

ProfessionalsFemale 6 0 6 0 6

Male 5 0 5 0 5

Technicians and asso-ciate professionals

Female 6 0 6 0 6

Male 4 0 4 0 4

Clerks Female 8 0 8 0 8

Male 2 0 2 0 2

Service and sales workers

Female 0 0 0 0 0

Male 0 0 0 0 0

Skilled agriculture and fishery workers

Female 0 0 0 0 0

Male 0 0 0 0 0

Craft and related trades workers

Female 0 0 0 0 0

Male 0 0 0 0 0

Plant and machine operators and assem-blers

Female 0 0 0 0 0

Male 0 0 0 0 0

Elementary occupa-tions

Female 4 0 4 0 4

Male 1 0 1 0 1

Sub TotalFemale 0 0 0 0 0

Male 0 0 0 0 0

Total 36 0 36 0 36

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Table 4.15.2 Training provided for the period 1 April 2014 and 31 March 2015

Occupational category GenderNumber of

employees as at 1 April 2014

Training provided within the reporting period

Learnerships

Skills Programmes & other short

courses

Other forms of training

Total

Legislators, senior officials and managers

Female 30 0 21 9 30

Male 11 0 9 2 11

Professionals Female 10 0 8 2 10

Male 15 0 10 5 15

Technicians and associate professionals

Female 43 0 29 14 43

Male 29 0 14 15 29

Clerks Female 42 0 30 12 42

Male 14 0 8 6 14

Service and sales workers

Female 8 0 7 1 8

Male 25 0 13 12 25

Skilled agriculture and fishery workers

Female 0 0 0 0 0

Male 0 0 0 0 0

Craft and related trades workers

Female 0 0 0 0 0

Male 0 0 0 0 0

Plant and machine operators and assemblers

Female 0 0 0 0 0

Male 0 0 0 0 0

Elementary occupations Female 1 0 1 1 2

Male 1 0 0 0 0

Sub Total Female 134 0 96 39 135

Male 95 0 54 40 94

Total 229 0 150 79 229

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4.16 Injury on duty

The following tables provide basic information on injury on duty.

Table 4.16.1 Injury on duty for the period 1 April 2014 and 31 March 2015

Nature of injury on duty Number % of total

Required basic medical attention only 0 0

Temporary Total Disablement 0 0

Permanent Disablement 0 0

Fatal 0 0

Total 0 0

4.17 Utilisation of Consultants

The following tables relates information on the utilisation of

consultants in the department.

In terms of the Public Service Regulations “consultant’ means

a natural or juristic person or a partnership who or which

provides in terms of a specific contract on an ad hoc basis

any of the following professional services to a department

against remuneration received from any source:

a) The rendering of expert advice;

b) The drafting of proposals for the execution of

specific tasks; and

c) The execution of a specific task which is of a

technical or intellectual nature, but excludes an

employee of a department.

Table 4.17.1 Report on consultant appointments using appropriated funds for the period 1 April 2014 and 31 March 2015

Project titleTotal number of consultants that

worked on projectDuration (work days) Contract value in Rand

0 0 0 0

0 0 0 0

Total number of projectsTotal individual

consultantsTotal duration

Work daysTotal contract value in

Rand

0 0 0 0

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Table 4.17.2 Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2014 and 31 March 2015

Project titlePercentage ownership by

HDI groupsPercentage management

by HDI groups

Number of consultants from HDI groups that work

on the project

0 0 0 0

0 0 0 0

Table 4.17.3 Report on consultant appointments using Donor funds for the period 1 April 2014 and 31 March 2015

Project titleTotal Number of

consultants that worked on project

Duration (Work days)

Donor and contract value in Rand

0 0 0 0

0 0 0 0

Total number of projectsTotal individual

consultantsTotal duration

Work daysTotal contract value in

Rand

0 0 0 0

0 0 0 0

Table 4.17.4 Analysis of consultant appointments using Donor funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2014 and 31 March 2015

Project titlePercentage ownership by

HDI groupsPercentage management

by HDI groups

Number of consultants from HDI groups that work

on the project

0 0 0 0

0 0 0 0

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4.18 Severance Packages

Table 4.18.1 Granting of employee initiated severance packages for the period 1 April 2014 and 31 March 2015

Salary bandNumber of

applications received

Number of applications referred to the MPSA

Number of applications supported by

MPSA

Number of packages

approved by department

Lower skilled (Levels 1-2) 0 0 0 0

Skilled Levels 3-5) 0 0 0 0

Highly skilled production (Levels 6-8) 0 0 0 0

Highly skilled supervision(Levels 9-12) 0 0 0 0

Senior management (Levels 13-16) 0 0 0 0

Total 0 0 0 0

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Chapter 5Part E: Financial Information

5

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5.1 Report of the Accounting Officer on vote 3: Department of Cooperative Governance and Traditional Affairs • For the Year Ended 31 March 2015

5.1.1 Overview of the operation in the Department

The Accounting Officer is responsible for the prepara-

tion of the financial statement and related information

included in the annual report and to ensure its integrity.

The financial statements are prepared in accordance

with the accounting policy and standards determined

by the National Treasury. This report sets out the key

accomplishments over the last financial year.

IMPORTANT POLICY DECISIONS AND STRATEGIC ISSUES

The department’s strategic goals over the medium term

are to:

§ Develop policies and legislation to lead the building

of capable, developmental and economically viable

local governance institutions (municipal and tradi-

tional councils);

§ Deepen participatory democracy through common

standards and practices of accountability and good

governance.

§ Support planning and coordination efforts across all

spheres of government in partnership with all sector

departments, local government agencies, traditional

institutions and organs of civil society.

§ Foster sustainable infrastructure development and

maintenance to ensure basic services delivery and

local economic development.

§ Monitor and evaluate the performance of provincial

departments of local government and traditional

councils.

§ Strengthen the capacity of the department to deliver

on its mandate.

The National Development Plan highlighted the im-

portance of cities for dealing with our development

challenges, and Census 2011 indicated the scale of

population growth in the urban areas. DCOG aims to

create a new deal for cities through restructuring the

city space economy, improving land use management

and facilitating investments in public transport and the

built environment. During the 14 February 2013 State of

the Nation Address (SONA), the President emphasized

the need for an Integrated Urban Development Frame-

work IUDF as one of the key tools for implementing the

National Development Plan (NDP) and also to support

municipalities to manage urbanisation.

The objective of the IUDF is to provide an interdepart-

mental and intergovernmental approach to attain inte-

grated urban development. It is a policy process and

a framework to understand why urban divides remain

stubbornly in place, with an eye to promoting effective

instruments to change this legacy, and promote resil-

ient and inclusive urban settlements.

5.1.1.1 Significant events that took place during the year

Presidential Local Government Summit – Launch of the

Back to Basics Approach. On 18 September 2014 Pres-

ident Jacob Zuma convened the second Presidential

Local Government Summit at the Gallagher Convention

Centre. The theme of the Summit was: “Back to Basics

– Serving our communities better”.

The purpose of the Summit was to discuss with nation-

al, provincial and local government leaders the critical

challenges affecting municipalities. In addition, it sets

out to guide the process on what needs to be done in

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Department of Cooperative Governance Vote 03

the intergovernmental sphere to improve performance

of municipalities that will result in the improvement of

people’s lives, the creation of decent living conditions

and a closure of the gap between Government and

communities.

The Summit pursued the following objectives:

a) An outline by the President of an urgent plan of

action to achieve the priorities of Local Government;

b) A commitment by delegates to implement an action

plan to ensure that municipalities are a great place to

work, play and live in by getting the basics right; and

c) Strengthening of inter-sphere collaboration and inte-

grated approach to serving communities.

At the culmination of the Summit the delegates, as a

collective declared, to do their best to make local gov-

ernment work to serve their people better. They com-

mitted to be the servants of the people and trustworthy

agents at their service. They unanimously embraced the

back-to-basics approach to address the challenges fac-

ing Local Government, and declared their commitment

to strengthen local government in order to move South

Africa forward.

The Summit concluded in an endorsement of the

change in approach through the adoption of a Decla-

ration, as well as the acceptance of an Action Plan that

will be used as an instrument to address the challeng-

es experienced by municipalities, the assignment of

responsibilities and the creation of a platform for the

monitoring of performance.

MUNICIPAL ADMINISTRATION AND HUMAN RESOURCES

Preparations for the 2016 Municipal Elections

Preparations are underway by all stakeholders to pre-

pare for the fourth democratic elections of all municipal

councils, which must be held within 90 days of 18 May

2016. The number of councillors for each municipal

council has been determined by MECs based on for-

mulae that was published in the Government Gazette

on 9 September 2014.The MDB is presently engaged

with the delimitation of wards, and it is envisaged that

final ward boundaries will be handed over to the IEC

by the MDB during November 2015. The IEC will then

begin with their preparations across the country for the

holding of elections.

Draft Local Government: Municipal Staff Regulations

The development of the draft Local Government: Mu-

nicipal Staff Regulations and Guidelines setting out

uniform municipal staff systems and procedures in ful-

fillment of the Minister’s regulatory powers have been

completed. The setting of these uniform standards will

strengthen the capacity of municipalities to perform

their functions by ensuring that municipalities appoint

suitably qualified and competent persons. It will re-

duce the concentration of persons with critical skills in

affluent municipalities at the expense of smaller mu-

nicipalities by allowing horizontal mobility within local

government. These regulations represent government’s

resolve to professionalise municipal administration and

will go a long way in ensuring that the high incidents

of irregular and inappropriate appointments are ended.

They empower municipalities to move progressively to-

wards the upliftment of communities through the provi-

sion of basic services to communities.

Public Participation

The department was successful in facilitating the estab-

lishment of ward committees and strengthening their

oversight function in terms of monitoring and reporting

of community progress against Integrated Development

Plans (IDPs), Service Delivery Business Improvement

Plans (SDBIPs) and ward level service improvement

plans. The success is clearly defined through a support

Report of the Accounting Officer on vote 3: Department of Cooperative Governance and Traditional Affairs • for the year ended 31 March 2015

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to municipalities in the establishment and induction of

ward committees in accordance with the relevant leg-

islative framework. As at 31 March 2015, 4277 ward

committees had been established. Post the ward com-

mittee elections, the department rolled-out an induction

programme for newly elected ward committee mem-

bers. This induction formed part of a broader capacity

building programme comprising of both accredited and

non-accredited skills development learning areas.

Municipal Infrastructure Support Agency

During the 2014/15 financial year, MISA deployed 53

Technical Consultants to 121 municipalities across the

country, whereas 48 artisans were deployed to provide

support to five municipalities in Limpopo. In an attempt

to enhance municipal technical support and build ca-

pacity for the local government sector, MISA deployed

409 Apprentices, 27 Young Professionals, and 67 Expe-

riential Learners to a total of 64 municipalities. A total

of 139 trainee Water and Sanitation Process Controllers

were also deployed to municipalities to gain work ex-

perience, but to also provide much needed support to

the municipalities.

MISA has, since its establishment in 2012, facilitated

and funded technical training programs for more than

800 municipal officials in courses such as engineering,

planning, procurement of technical services, and asset

management.

The Community Work Programme (CWP)

The year under review saw a notable increase in the

CWP participation rate. A cumulative figure of 202 447

participants was achieved by the end of March 2015

from an annual target of 187 000 participants. During

2014/15, the CWP was implemented in 185 sites spread

over 159 municipalities and benefitted communities liv-

ing in more than 2000 wards across the country. The

programme largely benefited women who constituted

75% of participants, with youth making up 45% of par-

ticipants.

Qualitative achievements included the training of par-

ticipants which gave them skills that enabled some

of them to get employment in the regular economy.

Abject poverty in beneficiary communities where the

only source of income was the CWP wages was visibly

reduced. Home-based care and renovations to houses

belonging to vulnerable households helped improve the

quality of life in those households. CWP partnerships

also yielded demonstrable outcomes. For example, a

partnership with the University of North West (UNW)

resulted in the registration of 75 CWP participants who

are presently studying towards a Grade R Teachers’ Di-

ploma. Furthermore, the Mahikeng Local Municipality’s

waste management programme benefitted from the

support of the Japan International Cooperation Agency

(JICA) through a CWP-facilitated partnership. As a re-

sult of the JICA intervention, improvements in the waste

management services offered by the municipality were

registered.

The changes to our institutional model for the imple-

mentation of the programme from a three-tier model

to a one-tier model had an impact on the financial per-

formance of the programme as the induction of new

implementing agents and the re-registration of partici-

pants took longer than anticipated. This meant that the

inception of new sites and procurement could only start

during the third quarter.

5.1.2 Overview of the financial result of the Department

5.1.2.1 Departmental Receipts

In 2014/15 financial year, the Department budgeted

R918 000.00 for the departmental receipts accrue from

the collection of parking fees, recovered debt, commis-

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Department of Cooperative Governance Vote 03

sion on insurance policy premiums, the recovery of pri-

vate telephone expenses and expenditure due to breach

of study loan contracts. The actual revenue generated

for 2014/15 financial year increased significantly with a

rate of 108.72 per cent to the value of R1 916 000.00.

This is mainly due to a refund made by one of the Im-

plementing Agent that was not reappointed for the new

contract on unspent wage for participants. In the previ-

ous financial year 2013/14 the Department budget R874

000.00 against the actual revenue, which increased by

an annual rate of 39.59 per cent due to unspent funds

by one of the municipalities in Limpopo.

Revenue increased from R1 220 000.00 in 2013/14 to

R1 916 000.00 in 2014/15 financial year, at an annual

rate of 57.05 per cent. The Department is not a revenue

generating entity, as such, there are no tariff charges for

goods sold and/or services rendered.

2014/15 2013/14

R’000 R’000

Departmental Revenue

Tax revenue - -

Sales of goods and services other than capital assets 174 175

Fines, penalties and forfeits - -

Interest, dividends and rent on land 1 -

Sales of capital assets 53 16

Transactions in financial assets and liabilities 1 688 1 029

Transfer received - -

Total revenue collected 1 916 1 220

Less: Own revenue included in appropriation -

Departmental revenue collected 1 916 1 220

5.1.2.2 Programme Expenditure

A summary narrative of the actual expenditure in com-

parison to the adjusted appropriation for both the cur-

rent and previous financial year. The financial informa-

tion is presented per programme justifying the under/

(over) expenditure with corrective actions to prevent the

recurrence in the future

5.1.2.2.1 PROGRAMME 1: ADMINISTRATION

The actual expenditure in Programme 1 against the

adjusted appropriation only reflects a 0.2 per cent un-

der-spending, which is immaterial. The comparison of

the current spending indicates a 0.04 per cent increase

against the spending for the previous financial year

(2013/14). This is mainly due to the inflation related in-

creases.

Report of the Accounting Officer on vote 3: Department of Cooperative Governance and Traditional Affairs • for the year ended 31 March 2015

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5.1.2.2.2 PROGRAMME 2: POLICY, RESEARCH AND KNOWLEDGE MANAGEMENT

The actual expenditure in Programme 2 against the

adjusted appropriation reflect an under-spending of

8.8 per cent, which is mainly due to the delay that

emanated from the implementation of the 2014/15

Procurement Plan. The current spending indicates a

4,3 per cent decrease against the spending for the

same period in the previous financial year (2013/14).

This is mainly due to cost cutting measure on the

use of consultants and other line items such as

catering, venues and travel and subsistence in the

Branch. The Procurement Plan has been approved

early before the commencement of the new finan-

cial year to avoid the recurrence of the 2014/15

finan cial year.

5.1.2.2.3 PROGRAMME 3: GOVERNANCE AND INTERGOVERNMENTAL RELATIONS

The actual expenditure in Programme 3 against the

adjusted appropriation reflect an under-spending

of 6.5 per cent, which is mainly due to the with-

holding of Local Government Equitable Share from

some municipalities which did not perform accord-

ing to the DORA requirements as well as delays in

the transfer of funds to the United Cities & Local

Government of Africa, because the claim was not

submitted to the Department. The current spending

rate is 2.5 per cent lower than the spending rate in

the previous financial year (2013/14) due to the rea-

sons mentioned above. The newly established unit

in MIG administration will assist poor performing

municipalities to enhance the spending patterns on

MIG.

5.1.2.2.4 PROGRAMME 4: NATIONAL DISASTER MANAGEMENT CENTRE

The actual expenditure in Programme 4 against the adjusted

appropriation reflect an under-spending of 53.6 per cent is

mainly due to the uncertainty with the payment of disaster

relief grants. This grant is only paid when disasters are de-

clared and with the approval of the National Treasury. The

current spending is 14.6 per cent less than in the previous

financial year (2013/14) due to the uncertainty when Disas-

ter Relief grants will be paid.

5.1.2.2.5 PROGRAMME 5: PROVINCIAL AND MUNICIPAL GOVERNMENT SYSTEMS

The actual expenditure in Programme 5 against the adjusted

appropriation reflect a 100.0 per cent spending rate for a

twelve month period. The current spending rate is also sim-

ilar when compared to the previous financial year (2013/14).

5.1.2.2.6 PROGRAMME 6: INFRASTRUCTURE AND ECONOMIC DEVELOPMENT

The actual expenditure in Programme 6 against the ad-

justed appropriation reflect an under-spending of 3.6 per

cent, which is mainly due to the withholding of Municipal

Infrastructure Grant funds for one municipality; CWP that

delayed to pay invoices that were received late from the

Implementing Agents and delays with the procurement pro-

cesses for the material used by participants, at site level. The

current spending reflected a 2.7 per cent increase against

the spending for the same period in the previous financial

year, 2013/14 mainly due to the change in the business

model of the payment of CWP participants and induction of

new Implementing Agents especially on the supply-chain

management processes.

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5.1.2.2.7 PROGRAMME 7: DEPARTMENT OF TRADITIONAL AFFAIRS

The actual expenditure in Programme 7 against the ad-

justed appropriation reflect 100.0 per cent funds trans-

ferred. Furthermore, the Department has claimed the

expenditure incurred on behalf of DTA, which has been

confirmed by the DTA Team.

Table 1: Savings trends since 2008/09 financial year.

Year Expenditure R ‘000

Saving %

Saving R ‘000

2008/09 35 348 095 0,82 290 912

2009/10 36 016 101 1,42 511 032

2010/11 44 457 917 0.26 115 202

2011/12 46 221 564 4.11 1 983 096

2012/13 53 442 919 2.57 1 412 259

2013/14 56 401 572 3.51 2 057 335

2014/15 59 477 784 6.30 3 976 101

Table 2: Financial information for the current and previous financial year

Programme Name 2014/2015 2013/2014Final

Appropriation R’000

Actual Expenditure

R’000

(Over)/Under Expenditure

R’000

Final Appropriation

R’000

Actual Expenditure

R’000

(Over)/Under Expenditure

R’000

Prog 1: Administration 242 025 241 628 397 247 879 247 498 381

Prog 2: Policy, Research and Knowledge Management

20 251 18 471 1 780 16 184 15 453 731

Prog 3: Governance and Intergovernmental Relations

44 610 131 41 709 671 2 900 460 40 725 499 39 080 214 1 645 285

Prog 4: National Disaster Management Centre

831 415 385 906 445 509 694 439 423 859 270 580

Prog 5: Provincial and Municipal Government Systems

289 533 289 479 54 291 872 291 872 0

Prog 6: Infrastructure and Economic Development

17 344 666 16 716 765 627 901 16 371 332 16 230 974 140 358

Prog 7: Department of Traditional Affairs

115 864 115 864 0 111 702 111 702 0

Total 63 453 885 59 477 784 3 976 101 58 458 907 56 401 572 2 057 335

The table 2 below depict the total expenditure of the

department, excluding local and foreign aid assistance,

amount to R59 477 784 representing 93.7% of the total

appropriation. The under-spending of R3 976 101 was,

therefore, 6.3 % of the total budget. This reflects a slight

increase in the annual under expenditure when com-

pared with 2013/14 financial year which was at 2.8%.

This comprised mainly of compensation of employees;

goods and services; payments of capital assets and

Transfers & subsidies.

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Table 2 depicts the initial budget of the Department of

Cooperative Governance for the 2014/15 financial year

amounts to R63 212 720 000.00. During the 2014/15

Adjusted Estimates of National Expenditure, the De-

partment received an additional appropriation to the

value of R241 165 000.0, which slightly increased the

appropriation to R63 453 885 000.00. This represents

an increase of R4 994 978 000.00 (8.54%) when

compared with the budget allocation for the previous

financial year.

The main contributing programmes that increased

the allocation was mainly in respect of the Munici-

pal Disaster Recovery Grant, introduction of a new

grant called Municipal Demarcation Transition Grant,

approved roll-over of MIG funds that were not spend

in the 2013/14 financial year under Section 18 (1)(b)

of the Division of Revenue Act and additional funding

on Municipal Disaster Relief Grant as unforeseeable

and unavoidable expenditure for post-disaster recon-

struction and rehabilitation of municipal infrastructure

in Eastern Cape, Gauteng, KwaZulu-Natal, Limpopo,

Mpumalanga and Western Cape.

5.1.2.3 Virement and roll-over

5.1.2.3.1 VIREMENT

The following Virement were effected in terms of sec-

tion 43 of the PFMA (Act No. 1 of 1999) as amended

to fund the overruns and increased spending levels of

the different Programmes of the Department of Coop-

erative Governance the 2014/15 financial year, in line

with the mandate and priorities:

Compensation of Employees

R6.398 million was shifted from Programme 6: Infra-

structure and Economic Development to Increase the

Compensation of Employees allocations of the follow-

ing Programmes:

§ Programme 1: Administration with R2.026 million;

§ Programme 2: Policy Research and Knowledge

Management with R737 thousand;

§ Programme 3: Governance and Intergovernmental

Relations with R326 thousand;

§ Programme 4: National Disaster Management Cen-

tre with R110 thousand; and

§ Programme 5: Provincial and Municipal Govern-

ment Systems with R550 thousand.

To increase the Goods and Services allocations of the

following Programmes:

§ Programme 1: Administration with R983 thousand;

§ Programme 4 National Disaster Management Cen-

tre with R1.336 million; and

§ Programme 5: Provincial and Municipal Govern-

ment Systems with R330 thousand.

Goods and Services

R102 thousand was shifted from Programme 6: Infra-

structure and Economic Development to increase the

Goods and Services allocation of the following Pro-

grammes:

§ Programme 5: Provincial and Municipal Govern-

ment Systems with R65 thousand; and

§ Programme 1: Administration with R37 thousand

for Payment of Financial Assets.

R136 thousand was shifted from Programme 3: Gov-

ernance and Intergovernmental Relations Goods and

Services to increase the allocation of Programme 1:

Administration Payment of Financial Assets.

All the items, which are referred to above, have been

subjected to due processes in terms of the policies

and procedures. All Virements done in the department

were approved by the Directors-General. Subsequent-

ly, the National Treasury and the Executive Authority

were also informed of the approved virements.

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5.1.2.3.2 ROLL-OVER

The roll-over of funds from the 2014/15 financial year were

done in terms of Section 30 (2) (g) and 31 (2) (g) of the

PFMA, 1999 to fund projects that were carried over to the

2015/16 financial year.

Goods and Service:

Programme 6: Infrastructure and Economic Development

Community Work Program requested the National Trea-

sury to roll-over funds to the value of R216, 415 million

at the end of the 2014/15 financial year to finalise the

outstanding payments to the CWP Implementing Agents.

There was a delay in the commencement of the process

to procure tools, material and protective clothing for the

participants.

Transfer and Subsidies:

Programme 3: Governance and Intergovernmental Relations

An unspent amount of R2, 898 billion in respect of the Lo-

cal Government Equitable Share Grant, which is the total

amount at the end of the 2014/15 financial year, was re-

quested to be roll-over to the 2015/16 financial year from

the National Treasury.

Programme 6: Infrastructure and Economic Development

An amount of R18, 604 million which was not transferred

to the Ditsobotla Local Municipality from the Municipal In-

frastructure Grant (MIG), was requested to be rolled over

from the National Treasury.

5.1.3 Unauthorised, fruitless and wasteful expenditure

The Department has not discovered any potential

Unauthorised, fruitless and wasteful expenditure dis-

closed in note 15.

5.1.4 Future Plans of the Department

The future plans of the Department is to integrate

the Annual Performance Plan, in line with the Back to

Basics Approach, which wil include the realignment

of the departmental organizational structure.

5.1.5 Public private partnership (PPP)

5.1.5.1 Brief summary of progress on the PPP

The Department has not entered into any Public Pri-

vate Partnership agreements.

5.1.6 Discontinued activities / activities to be discontinued

There were no activities discontinued during the

2014/15 financial year

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5.1.7 New or proposed activities

There were no newly proposed activities identified for the

year under review.

5.1.8 Supply chain management

5.1.8.1 List all unsolicited bid proposals concluded for the year under review

The department did not conclude any unsolicited bid

proposal for the year under review

5.1.8.2 Indicate whether SCM processes and systems are in place to prevent irregular expenditure

The department has processes and systems in place to

detect and prevent irregular expenditure. The department

has functional bid committees to ensure transparency,

fairness and compliance with the tender processes. SCM

has developed and implemented a checklist for all SCM

compliance requirements and all transactions that are

processed through SCM are checked against the check-

list.

5.1.8.3 Challenges experienced in SCM and how they were resolved

Supply Chain Management had experienced of non-avail-

ability of bid committee members. This challenge has

been resolved by appointing additional members.

5.1.9 Gifts and donation received in kind from non-related parties.

The closing balance of R34 818 000.00 was paid

back to the RDP account. The Department did not

receive any gifts and donations in the 2014/15 finan-

cial year.

5.1.9.1 Exemptions and deviations received from the National Treasury

The Department has no exemptions and deviations

received from the National Treasury.

5.1.10 Events after the reporting date

A forensic investigation has been instituted by the

Department. The investigation was initiated based on

an allegation of possible fraudulent payments. The

project will be finalised in the 2015/16 financial year.

5.1.11 Any other material matters

No other material matters were identified in respect

of the 2014/15 financial year.

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5.1.12 Acknowledgment

Generosity and political support of the Executive have

allowed the Department to carry out its mission and

assist in improving the lives of all South Africans.

During the 2014/15 financial year, the Department of

Cooperative Governance sets out the Back to Basic ap-

proach as a program of action for the South African

government to develop, govern and transform the liv-

ing conditions of all citizens. That is our commitment

and the promise we make with our strategy. Everything

we do centres on integrity, responsiveness and highly

effective governance system by working with the com-

munities to achieve sustainable development and im-

proved service delivery.

Our 511 employees apply this strategy at operational

level every day. Their passion, their dedication and their

wealth of ideas bring the Department’s vision to life –

both internally and externally. It is because of them that

the Department is able to retain sound financial man-

agement and healthy operational performance.

Management would like to thank everyone who dedi-

cated their time and talent in 2014/15 financial year to

the Department of Cooperative Governance as well as

to the implementation of Back to Basic programme at

the local level, our shareholders, partners and the gen-

eral public. Together, we will take this Department to

new heights of success in 2015/16 financial year.

5.1.13 Conclusions

The Department had its share of setbacks due to the

transition towards back to basics and reorganisation of

the organisational structure. The reorganisation of the

organisational structure predominantly affected the ar-

eas of reporting and efficacy. However, a steeling lead-

ership by the Honourable Minister Pravin Gordhan, the

passion and dedication of the employees is conspicu-

ous in the achieved unqualified audit opinion expressed

by the Auditor-General. One of the better ways to elu-

cidate improving performance is the escalating num-

ber of projects achieved as detailed in chapter 2 of the

Annual Report.

5.1.14 Approval and sign-off

The Annual Financial Statements set out on pages 131

to 260 have been approved by the accounting officer.

Mr. V Madonsela

Director-General

Department of Cooperative Governance

31 July 2015

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Department of Cooperative Governance Vote 03

5.2 Report of the Auditor-General to Parliament on vote 3: Department of Cooperative Governance and Traditional Affairs

Report on the financial statements

INTRODUCTION

1. I have audited the financial statements of the De-

partment of Cooperative Governance set out on

pages 132 to 259, which comprise the appropria-

tion statement, statement of financial position as at

31 March 2015, the statement of financial perfor-

mance, statement of changes in net assets, and cash

flow statement for the year then ended, as well as

the notes, comprising a summary of significant ac-

counting policies and other explanatory information.

ACCOUNTING OFFICER’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

2. The accounting officer is responsible for the prepa-

ration and fair presentation of these financial state-

ments in accordance with Modified Cash Standard

(MCS) prescribed by the National Treasury and the

requirements of the Public Finance Management Act

of South Africa, 1999 (Act no. 1 of 1999) (PFMA),

and the Division of Revenue Act of South Africa,

2013 (Act no. 10 of 2014) (DoRA) and for such in-

ternal control as the accounting officer determines

is necessary to enable the preparation of financial

statements that are free from material misstatement,

whether due to fraud or error.

AUDITOR-GENERAL’S RESPONSIBILITY

3. My responsibility is to express an opinion on these

financial statements based on my audit. I conducted

my audit in accordance with International Standards

on Auditing. Those standards require that I comply

with ethical requirements, and plan and perform the

audit to obtain reasonable assurance about whether

the financial statements are free from material mis-

statement.

4. An audit involves performing procedures to obtain

audit evidence about the amounts and disclosures

in the financial statements. The procedures selected

depend on the auditor’s judgement, including the as-

sessment of the risks of material misstatement of the

financial statements, whether due to fraud or error. In

making those risk assessments, the auditor consid-

ers internal control relevant to the entity’s preparation

and fair presentation of the financial statements in

order to design audit procedures that are appropriate

in the circumstances, but not for the purpose of ex-

pressing an opinion on the effectiveness of the enti-

ty’s internal control. An audit also includes evaluating

the appropriateness of accounting policies used and

the reasonableness of accounting estimates made

by management, as well as evaluating the overall

presentation of the financial statements.

5. I believe that the audit evidence I have obtained is

sufficient and appropriate to provide a basis for my

audit opinion.

OPINION

6. In my opinion, the financial statements present fair-

ly, in all material respects, the financial position of

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the Department of Cooperative Governance as at

31 March 2015 and its financial performance and

cash flows for the year then ended, in accordance

with Modified Cash Standard prescribed by the Na-

tional Treasury and the requirements of the PFMA

and DoRA.

ADDITIONAL MATTER

7. I draw attention to the matter below. My opinion is

not modified in respect of this matter.

UNAUDITED SUPPLEMENTARY SCHEDULES

8. The supplementary information set out on pages

198 to 259 does not form part of the financial state-

ments and is presented as additional information. I

have not audited these schedules and, accordingly,

I do not express an opinion thereon

Report on other legal and regulatory requirements.9. In accordance with the Public Audit Act of South

Africa, 2004 (Act No. 25 of 2004) and the general

notice issued in terms thereof., I have a responsibil-

ity to report findings on the reported performance

information against predetermined objectives for

selected programmes presented in the annual per-

formance report, non-compliance with legislation

and internal control. The objective of my tests was

to identify reportable findings as described under

each subheading but not to gather evidence to

express assurance on these matters. Accordingly,

I do not express an opinion or conclusion on these

matters.

PREDETERMINED OBJECTIVES

10. I performed procedures to obtain evidence about

the usefulness and reliability of the reported per-

formance information for the following select-

ed programmes presented in the annual perfor-

mance report of the department for the year ended

31 March 2015:

§ Programme 1: Administration on pages 34 to 39;

§ Programme 2: Policy Research and Knowledge

Management on pages 40 to 44;

§ Programme 3: Governance and Intergovernmen-

tal Relations (G&IGR) on pages 45 to 51;

§ Programme 4: National Disaster Management

Centre (NDMC) on pages 52 to 58;

§ Programme 5: Provincial and Municipal Govern-

ment Support (PMGS) on pages 59 to 67; and

§ Programme 6: Infrastructure and Economic De-

velopment (Community Works Programme) on

pages 68 to 72.

11. I evaluated the reported performance information

against the overall criteria of usefulness and reliabil-

ity.

12. I evaluated the usefulness of the reported perfor-

mance information to determine whether it was

presented in accordance with the National Trea-

sury’s annual reporting principles and whether

the reported performance was consistent with the

planned programmes. I further performed tests to

determine whether indicators and targets were well

defined, verifiable, specific, measurable, time bound

and relevant, as required by the National Treasury’s

Framework for managing programme performance

information (FMPPI).

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13. I assessed the reliability of the reported perfor-

mance information to determine whether it was

valid, accurate and complete.

14. The material findings in respect of the selected pro-

grammes are as follows:

PROGRAMME 2: POLICY, RESEARCH AND KNOWLEDGE MANAGEMENT

Reliability of reported performance information

15. The FMPPI requires auditees to have appropriate

systems to collect, collate, verify and store perfor-

mance information to ensure valid, accurate and

complete reporting of actual achievements against

planned objectives, indicators and targets. Signifi-

cantly important targets which relate to the overall

mandate of the department were not reliable when

compared to the source information or evidence

provided. This was due to inadequate monitoring of

management of the completeness of source docu-

mentation in support of actual achievements.

PROGRAMME 3: GOVERNANCE AND INTERGOVERNMENTAL RELATIONS (G&IGR)

Reliability of reported performance information

16. The FMPPI requires auditees to have appropriate

systems to collect, collate, verify and store perfor-

mance information to ensure valid, accurate and

complete reporting of actual achievements against

planned objectives, indicators and targets. Signifi-

cantly important targets which relate to the overall

mandate of the department were not reliable when

compared to the source information or evidence

provided. This was due to inadequate monitoring of

management of the completeness of source docu-

mentation in support of actual achievements.

PROGRAMME 5: PROVINCIAL AND MUNICIPAL GOVERNMENT SUPPORT (PMGS)

Usefulness of reported performance information

Measurability of indicators and targets

17. The FMPPI requires the following:

§ Performance targets must be specific in clearly

identifying the nature and required level of per-

formance. A total of 29% (4/14) of the targets

were not specific.

§ Performance targets must be measurable. We

could not measure the required performance for

29% (4/14) of the targets.

18. This was due to the fact that management was

aware of the requirements of the FMPPI, but did not

strictly and adequately apply the principles due to

‘support’ not being clearly defined/described and a

technical indicator description not being adequate-

ly developed. Furthermore, management did not

follow through on prior year commitments made.

Reliability of reported performance information

19. The FMPPI requires auditees to have appropriate

systems to collect, collate, verify and store perfor-

mance information to ensure valid, accurate and

complete reporting of actual achievements against

planned objectives, indicators and targets. Signifi-

cantly important targets which relate to the overall

mandate of the department were not reliable when

compared to the source information or evidence

provided

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Department of Cooperative Governance Vote 03

20. This was due to inadequate monitoring of manage-

ment of the completeness of source documentation in

support of actual achievements. In addition, there were

also inadequate technical indicator descriptions for the

accurate measurement, recording and monitoring of

performance for significantly important targets as the

required level performance for support to be rendered

was not specific.

PROGRAMME 6: INFRASTRUCTURE AND ECONOMIC DEVELOPMENT (COMMUNITY WORK PROGRAMME)

Reliability of reported of performance information

21. The FMPPI requires auditees to have appropriate sys-

tems to collect, collate, verify and store performance

information to ensure valid, accurate and complete

reporting of actual achievements against planned ob-

jectives, indicators and targets. Significantly important

targets were not reliable when compared to the source

information or evidence provided. This was due to a

lack of monitoring of the validity and completeness of

source documentation in support of actual achieve-

ments.

PROGRAMME 1: ADMINISTRATION

22. I did not identify any material findings on the usefulness

and reliability of the reported performance information

for Programme 1: Administration

PROGRAMME 4: NATIONAL DISASTER MANAGEMENT CENTRE

23. I did not identify any material findings on the usefulness

and reliability of the reported performance information

for Programme 4: National Disaster Management Centre.

ADDITIONAL MATTERS

24. I draw attention to the following matter:

ACHIEVEMENT OF PLANNED TARGETS

25. Refer to the annual performance report on page(s)

x to x and x to x for information on the achieve-

ment of the planned targets for the year. This

information should be considered in the context

of the qualified conclusions expressed on useful-

ness and reliability of the reported performance

information in paragraphs [x; x; x] of this report

Compliance with legislation

26. I performed procedures to obtain evidence that

the department had complied with applicable

legislation regarding financial matters, financial

management and other related matters. My find-

ings on material non-compliance with specific

matters in key legislation, as set out in the general

notice issued in terms of the PAA, are as follows:

ANNUAL FINANCIAL STATEMENTS, PERFORMANCE AND ANNUAL REPORTS

27. The financial statements submitted for auditing

were not prepared in accordance with the pre-

scribed financial reporting framework as required

by section 40(1)(b) of the PFMA.

28. Material misstatements of disclosure notes iden-

tified by the auditors in the submitted financial

statements were subsequently corrected, result-

ing in the financial statements receiving an un-

qualified audit opinion.

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PROCUREMENT AND CONTRACT MANAGEMENT

29. Contracts were awarded to bidders based on

points given for criteria that differed from those in

the original invitation for bidding, in contravention

of Treasury Regulations 16A6.3(a) and Preferen-

tial Procurement Regulations.

30. Goods and services with a transaction value be-

low R500 000 were procured without obtaining

the required price quotations, as required by

Treasury Regulation 16A6.1.

31. Goods services of a transaction of above

R500 000 were procured without inviting com-

petitive bids, as required by Treasury Regulation

16A6.1.

EXPENDITURE MANAGEMENT

32. Effective steps were not taken to prevent irregular

expenditure, as required by section 38(1)(c)(ii) of

the PFMA and TR 9.1.1.

33. Effective internal controls were not in place for

payment approval and processing, as required by

TR 8.1.1.

Internal control

34. I considered internal control relevant to my au-

dit of the financial statements, the annual per-

formance report and compliance with legislation.

The matters reported below are limited to the sig-

nificant internal control deficiencies that resulted

in the findings on the annual performance report

and the findings on non-compliance with legisla-

tion included in this report.

LEADERSHIP

35. The accounting officer and management did not

exercise adequate oversight responsibility regard-

ing financial and performance reporting and com-

pliance as well as related internal controls.

36. Management did not properly develop and ade-

quately monitor the implementation of appropriate

action plans to address internal control deficiencies

identified and communicated to management in

the prior year.

FINANCIAL AND PERFORMANCE MANAGEMENT

37. Management did not implement proper record

keeping in a timely manner to ensure that com-

plete, relevant and accurate information is accessi-

ble and available to support performance reporting.

38. Management did not properly implement adequate

controls over daily and monthly processing and rec-

onciling of transactions.

39. Management did not adequately prepare regular,

accurate and complete financial reports that are

supported and evidence by reliable information.

40. Management did not adequately review and mon-

itor compliance with applicable laws and regula-

tions relating supply chain management.

Report of the Auditor-General to Parliament on vote 3: Department of Cooperative Governance and Traditional Affairs

Page 132: ANNUAL REPORT - COGTA

130

Department of Cooperative Governance Vote 03

Report of the Auditor-General to Parliament on vote 3: Department of Cooperative Governance and Traditional Affairs

Other reports

Investigations

41. A forensic investigation by an external service pro-

vider was initiated by the Department of Coopera-

tive Governance into fraud committed on services

procured through a central service provider. The

investigation was still ongoing at the date of this

report.

42. An investigation into the following allegations by

the SIU was proclaimed on 23 January 2014 by

the President:

§ The appointment of a service provider to provide

technical support and administrative services in

respect of the Ward Based Co-operatives Pro-

gramme of COGTA.

§ Payments that were made by the Department in

a manner that was allegedly not fair, competitive,

transparent, equitable or cost-effective; contrary

to, among other things, legislation and policies.

The SIU have concluded the fieldwork and a report will

be issued to the Presidency in terms of their mandate.

Disciplinary action is in progress at the date of this re-

port.

Pretoria

31 July 2015

Page 133: ANNUAL REPORT - COGTA

131

Chapter 5

Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

ap

ter

5• P

art

E: F

ina

nci

al I

nfo

rma

tio

n

5.3 Annual Financial Statements for National Department of Cooperative Governance

For the year ended 31 March 2015

TABLE OF CONTENTS

Appropriation Statement 132

Notes to the Appropriation Statement 164

Statement of Financial Performance 167

Statement of Financial Position 169

Statement of Changes in Net Assets 171

Cash Flow Statement 172

Accounting policies 173

Notes to the Annual Financial Statements (including Accounting policies) 179

Annexures 198

Page 134: ANNUAL REPORT - COGTA

132

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Page 135: ANNUAL REPORT - COGTA

133

Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

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5 •

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am

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ts p

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tate

men

t of

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tota

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63

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) 5

9 4

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84

56

40

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Page 136: ANNUAL REPORT - COGTA

134

Ch

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5D

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me

nt

of

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49

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23

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13

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23 4

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4)

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94

22 9

93

110

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03

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83

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1 8

88

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6 5

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41

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3 5

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1 0

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6 0

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80 2

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00

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s-

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--

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Page 137: ANNUAL REPORT - COGTA

135

Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

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5 •

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ntor

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--

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19 6

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38

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spor

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ity295

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15

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6 9

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02

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95

Ren

tal a

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--

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-17

17

Inte

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--

--

--

--

-

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--

--

--

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Ren

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--

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60

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8-

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Page 138: ANNUAL REPORT - COGTA

136

Ch

ap

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5D

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me

nt

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--

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481

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11 6

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23

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122

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Bui

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--

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Page 139: ANNUAL REPORT - COGTA

137

Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

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| 20

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Ch

ap

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Pa

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b p

rogr

amm

e

1. M

inis

try

30 9

68

2 3

37

-

33 3

05

33 3

05

-

100,0

% 3

6 7

35

36 7

35

2.

Man

agem

ent

20 1

16

(2 4

20)

(1 0

23)

16 6

73

16 6

68

5

100,0

% 1

5 6

86

15 7

41

3.

Chi

ef O

pera

ting

Offi

cer

19 8

38

(2 5

31)

(5 1

26)

12 1

81

11 9

05

276

97

,7%

11 8

02

11 8

02

4.

Cor

pora

te S

ervi

ces

82 2

90

3 1

86

-

85 4

76

85 3

60

116

99,9

% 8

0 6

95

80 6

41

5.

Fina

ncia

l Ser

vice

s 2

9 0

27

(5 8

30)

(1 1

84)

22 0

13

22 0

13

-

100,0

% 2

7 4

12

27 0

30

6.

Com

mun

icat

ion

and

Liai

son

14 1

55

(3 5

13)

(1 3

21)

9 3

21

9 3

21

-

100,0

% 1

5 7

43

15 7

43

7.

Legi

slat

ive

Rev

iew

and

Dra

ftin

g 1

1 4

83

(369)

16

11 1

30

11 1

30

-

100,0

% 6

56

4

6 5

64

8.

Inte

rnal

Aud

it an

d R

isk

Man

agem

ent

10 6

30

(13

4)

(1 8

77)

8 6

19

8 6

19

-

100,0

% 8

743

8 7

43

9.

Offi

ce A

ccom

odat

ion

34 0

33

9 2

74

-

43 3

07

43 3

07

-

100,0

% 4

4 4

99

44 4

99

Tota

l for

su

b p

rogr

amm

es 2

52

54

0

-

(10

515

) 2

42

02

5

241

62

8

397

9

9,8

% 2

47 8

79

247

49

8

Econ

omic

cla

ssifi

cati

on

Cu

rren

t p

aym

ents

24

5 6

98

(

5 3

99

) (1

0 6

88

) 2

29

611

2

29

24

8

36

3

99

,8%

23

6 5

51

23

6 6

07

Com

pen

sati

on o

f em

plo

yees

114

96

5

(2

00

) 2

02

6

116

791

1

16 7

91

-

100

,0%

113

13

9

113

957

Sal

arie

s an

d w

ages

105 0

30

(235)

60

4

105 3

99

105 3

99

-

100,0

% 1

02 6

44

103 2

71

Soc

ial c

ontr

ibut

ions

9 9

35

35

1 4

22

11 3

92

11 3

92

-

100,0

% 1

0 4

95

10 6

86

Goo

ds

and

ser

vice

s 1

30

73

3

(5

19

9)

(12

714

) 1

12 8

20

1

12 4

57

36

3

99

,7%

12

3 4

12

12

2 6

50

Adm

inis

trat

ive

fees

120

(74)

-

46

46

-

100,0

% 6

0

59

Adv

ertis

ing

4 4

54

(2 9

03)

-

1 5

51

1 5

51

-

100,0

% 2

463

2 8

56

Min

or a

sset

s 6

26

692

-

1 3

18

1 3

18

-

100,0

% 8

04

893

Aud

it co

sts:

Ext

erna

l 7

393

(2 9

93)

(798)

3 6

02

3 6

02

-

100,0

% 8

767

8

767

Bur

sarie

s: E

mpl

oyee

s 1

207

(

270)

-

937

9

37

-

100,0

% -

-

Cat

erin

g: D

epar

tmen

tal a

ctiv

ities

1 8

80

(776

) -

1

10

4

1 1

04

-

100,0

% 3

525

3 5

54

Page 140: ANNUAL REPORT - COGTA

138

Ch

ap

ter

5D

ep

art

me

nt

of

C

oo

pe

rati

ve G

ove

rna

nce

Vo

te 0

3

Com

mun

icat

ion

(G&

S)

7 8

88

(4 1

31)

(59)

3 6

98

3 6

19

79

97,9

% 7

349

6 9

61

Com

pute

r se

rvic

es 1

1 2

04

3 2

25

-

14 4

29

14 4

29

-

100,0

% 1

4 3

01

14 3

01

Con

sulta

nts:

Bus

ines

s an

d ad

viso

ry

serv

ices

9 0

61

2 6

11

(5 7

32)

5 9

40

5 9

40

-

100,0

% 7

50

4

7 5

04

Infr

astr

uctu

re a

nd p

lann

ing

serv

ices

-

-

-

-

-

-

-

-

-

Labo

rato

ry s

ervi

ces

-

-

-

-

-

-

-

-

-

Sci

entifi

c an

d te

chno

logi

cal s

ervi

ces

-

-

-

-

-

-

-

-

-

Lega

l ser

vice

s 5

005

1 1

52

-

6 1

57

6 1

57

-

100,0

% 3

367

3

367

Con

trac

tors

4 7

97

1 3

19

(2 0

00)

4 1

16

4 1

16

-

100,0

% 2

010

2

010

Age

ncy

and

supp

ort

/ ou

tsou

rced

ser

-vi

ces

5 5

22

(3 6

42)

(1 8

77)

3

3

-

100,0

% 4

4

Ente

rtai

nmen

t 5

3

(53)

-

-

-

-

-

-

-

Flee

t se

rvic

es (

incl

udin

g go

vern

men

t m

otor

tra

nspo

rt)

-

1 8

52

-

1 8

52

1 8

52

-

100,0

% 1

430

1 4

51

Hou

sing

-

-

-

-

-

-

-

-

-

Inve

ntor

y: C

loth

ing

mat

eria

l and

acc

es-

sorie

s -

-

-

-

-

-

-

-

-

Inve

ntor

y: F

arm

ing

supp

lies

-

-

-

-

-

-

-

-

-

Inve

ntor

y: F

ood

and

food

sup

plie

s -

1

-

1

1

-

10

0,0

% -

-

Inve

ntor

y: F

uel,

oil a

nd g

as 8

4

37

-

121

1

11

10

91,7

% 5

5

Inve

ntor

y: L

earn

er a

nd t

each

er s

uppo

rt

mat

eria

l 1

2

(9)

-

3

3

-

100,0

% 3

43

343

Inve

ntor

y: M

ater

ials

and

sup

plie

s 2

4

(12)

-

12

12

-

100,0

% 1

4

14

Inve

ntor

y: M

edic

al s

uppl

ies

8

(8)

-

-

-

-

-

-

-

Inve

ntor

y: M

edic

ine

-

-

-

-

-

-

-

-

-

Med

sas

inve

ntor

y in

terf

ace

-

-

-

-

-

-

-

-

-

Inve

ntor

y: O

ther

sup

plie

s 3

04

(30

4)

-

-

-

-

-

-

-

Con

sum

able

sup

plie

s -

1

990

-

1 9

90

1 9

86

4

99,8

% 2

07

212

Con

sum

able

: Sta

tione

ry, p

rintin

g an

d of

fice

supp

lies

5 7

33

(1 0

89)

(1 3

95)

3 2

49

3 2

49

-

100,0

% 3

095

3 1

92

Ope

ratin

g le

ases

4 0

00

27 6

20

-

31 6

20

31 6

20

-

100,0

% 3

8 3

86

38 3

62

Prop

erty

pay

men

ts 4

1 3

35

(26 7

04)

-

14 6

31

14 6

31

-

100,0

% 9

028

9 0

28

Tran

spor

t pr

ovid

ed: D

epar

tmen

tal a

ctiv

ity 2

95

(295)

-

-

-

-

-

1 7

98

1 7

98

Trav

el a

nd s

ubsi

sten

ce 1

3 3

86

1 1

61

(853)

13 6

94

13 4

25

269

98,0

% 1

4 6

78

13 7

14

Page 141: ANNUAL REPORT - COGTA

139

Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

ap

ter

5 •

Pa

rt E

: Fin

an

cia

l In

form

ati

on

Trai

ning

and

dev

elop

men

t 3

324

(2 8

87)

-

437

4

37

-

100,0

% 7

82

781

Ope

ratin

g pa

ymen

ts 1

037

5

3

-

1 0

90

1 0

89

1

99,9

% 1

128

1 1

17

Venu

es a

nd f

acili

ties

1 9

81

(762)

-

1 2

19

1 2

19

-

100,0

% 2

347

2

340

Ren

tal a

nd h

iring

-

-

-

-

-

-

-

17

17

Inte

rest

and

ren

t on

land

-

-

-

-

-

-

-

-

-

Inte

rest

(In

cl. i

nter

est

on u

nita

ry p

ay-

men

ts (

PPP)

) -

-

-

-

-

-

-

-

-

Ren

t on

land

-

-

-

-

-

-

-

-

-

Tran

sfer

s an

d s

ub

sid

ies

76

2

271

-

1

03

3

99

9

34

9

6,7

% 9

93

9

93

Prov

ince

s an

d m

unic

ipal

ities

100

(42)

-

58

24

34

41,4

% 1

9

19

Prov

ince

s -

1

9

-

19

19

-

100,0

% 1

9

19

Prov

inci

al R

even

ue F

unds

-

19

-

19

19

-

100,0

% 1

9

19

Prov

inci

al a

genc

ies

and

fund

s -

-

-

-

-

-

-

-

-

Mun

icip

aliti

es 1

00

(61

) -

3

9

5

34

12,8

% -

-

Mun

icip

al b

ank

acco

unts

100

(61

) -

3

9

5

34

12,8

% -

-

Mun

icip

al a

genc

ies

and

fund

s -

-

-

-

-

-

-

-

-

Dep

artm

enta

l age

ncie

s an

d ac

coun

ts 6

62

73

-

735

735

-

100,0

% -

-

Soc

ial s

ecur

ity f

unds

-

-

-

-

-

-

-

-

-

Dep

artm

enta

l age

ncie

s (n

on-b

usin

ess

entit

ies)

662

73

-

735

735

-

100,0

% -

-

Hou

seho

lds

-

240

-

240

240

-

100,0

% 9

74

974

Soc

ial b

enefi

ts -

2

22

-

222

222

-

100,0

% 9

54

95

4

Oth

er tra

nsfe

rs t

o ho

useh

olds

-

18

-

18

18

-

100,0

% 2

0

20

Pay

men

ts f

or c

apit

al a

sset

s 6

08

0

5 0

38

-

1

1 1

18

11

118

-

10

0,0

% 9

53

5

9 4

80

Bui

ldin

gs a

nd o

ther

fixe

d st

ruct

ures

-

-

-

-

-

-

-

-

-

Bui

ldin

gs -

-

-

-

-

-

-

-

-

Oth

er fi

xed

stru

ctur

es -

-

-

-

-

-

-

-

-

Mac

hine

ry a

nd e

quip

men

t 5

080

6 0

38

-

11 1

18

11 1

18

-

100,0

% 9

535

9 4

80

Tran

spor

t eq

uipm

ent

1 0

00

(1 0

00)

361

3

61

361

-

10

0,0

% 1

753

1 7

53

Oth

er m

achi

nery

and

equ

ipm

ent

4 0

80

7 0

38

(361

) 1

0 7

57

10 7

57

-

100,0

% 7

782

7 7

27

Sof

twar

e an

d ot

her

inta

ngib

le a

sset

s 1

000

(1 0

00)

-

-

-

-

-

-

-

Pay

men

t fo

r fi

nan

cial

ass

ets

-

90

1

73

26

3

26

3

-

100

,0%

80

0

418

TOTA

L 2

52

54

0

-

(10

515

) 2

42

02

5

241

62

8

397

9

9,8

% 2

47 8

79

247

49

8

Page 142: ANNUAL REPORT - COGTA

140

Ch

ap

ter

5D

ep

art

me

nt

of

C

oo

pe

rati

ve G

ove

rna

nce

Vo

te 0

3

Prog

ram

me

2: P

OLIC

Y,RE

SEAR

CH A

ND

KNOW

LEDG

E M

ANAG

EMEN

T

2014

/15

2013

/14

Adju

sted

Ap

prop

riatio

nSh

iftin

g of

Fu

nds

Vire

men

tFi

nal

Appr

opria

tion

Actu

al

Expe

nditu

reVa

rianc

eEx

pend

iture

as

% o

f fina

l ap

prop

riatio

n

Fina

l Ap

prop

riatio

nAc

tual

ex

pend

iture

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

%R’

000

R’00

0

Su

b p

rogr

amm

e

1. M

anag

emen

t: R

esea

rch

and

Polic

y4 2

50

(99)

-4 1

513 4

04

747

82.0

%3 0

38

3 0

38

2..

Polic

y an

d R

esea

rch

Met

hods

7 1

46

646

-7 7

92

6 7

59

1 0

33

86.7

%5 8

575 8

37

3. K

now

ledg

e an

d In

form

atio

n

Man

agem

ent

9 7

23

(547

)(8

68)

8 3

08

8 3

08

-10

0.0

%7 2

89

6 5

78

Tota

l for

su

b p

rogr

amm

es21

119

-(8

68

)2

0 2

5118

471

1 7

80

91.2

%16

18

415

45

3

Econ

omic

cla

ssifi

cati

on

Cu

rren

t p

aym

ents

21 1

19-

(96

8)

20

151

18 3

711

78

091

,2%

16 1

30

15 3

99

Com

pen

sati

on o

f em

plo

yees

11 1

94

-73

711

931

11 9

31-

100

,0%

10 6

1310

49

5

Sal

arie

s an

d w

ages

10 3

72(4

99)

737

10 6

1010

610

-10

0,0

%9 4

379 3

19

Soc

ial c

ontr

ibut

ions

822

499

-1 3

211 3

21-

100,0

%1 1

761 1

76

Goo

ds

and

ser

vice

s9

92

5-

(1 7

05

)8

22

06

44

01

78

078

,3%

5 5

174

90

4

Adm

inis

trat

ive

fees

-1

-1

1-

100,0

%1

1

Adv

ertis

ing

336

(314

)-

22

-22

-1

1

Min

or a

sset

s11

6(5

2)

-6

448

1675

,0%

66

Aud

it co

sts:

Ext

erna

l-

--

--

--

--

Bur

sarie

s: E

mpl

oyee

s-

--

--

--

--

Cat

erin

g: D

epar

tmen

tal a

ctiv

ities

510

(309)

-201

5115

025,4

%87

87

Com

mun

icat

ion

(G&

S)

185

169

-35

4339

1595,8

%367

226

Com

pute

r se

rvic

es97

5(5

87)

-388

388

-10

0,0

%51

51

Con

sulta

nts:

Bus

ines

s an

d ad

viso

ry

serv

ices

3 5

781 6

33

(1 6

90)

3 5

213 5

21-

100,0

%2 5

25

2 3

21

Con

trac

tors

50

(45)

-5

5-

100,0

%22

22

Age

ncy

and

supp

ort /

out

sour

ced

serv

ices

1 2

04

(552)

-652

-652

--

-

Page 143: ANNUAL REPORT - COGTA

141

Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

ap

ter

5 •

Pa

rt E

: Fin

an

cia

l In

form

ati

on

Ente

rtai

nmen

t16

(14)

-2

-2

--

-

Flee

t se

rvic

es (

incl

udin

g go

vern

men

t m

otor

tra

nspo

rt)

-2

-2

2-

100,0

%19

19

Inve

ntor

y: L

earn

er a

nd t

each

er s

uppo

rt

mat

eria

l-

--

--

--

36

36

Inve

ntor

y: O

ther

sup

plie

s4

--

4-

4-

--

Con

sum

able

sup

plie

s-

5-

55

-10

0,0

%-

-

Con

sum

able

: Sta

tione

ry, p

rintin

g an

d of

fice

supp

lies

510

852

-1 3

62

1 3

611

99,9

%868

800

Ope

ratin

g le

ases

54

16-

7070

-10

0,0

%11

811

8

Prop

erty

pay

men

ts-

--

--

--

--

Tran

spor

t pr

ovid

ed: D

epar

tmen

tal a

ctiv

ity-

--

--

--

--

Trav

el a

nd s

ubsi

sten

ce1 4

12(3

43)

(15)

1 0

54

54

451

051

,6%

1 0

25

825

Trai

ning

and

dev

elop

men

t13

6(1

18)

-18

-18

-86

86

Ope

ratin

g pa

ymen

ts451

(11)

-4

40

50

390

11,4

%202

202

Venu

es a

nd f

acili

ties

388

(333)

-55

55

-10

0,0

%10

310

3

Ren

tal a

nd h

iring

--

--

--

--

-

Inte

rest

and

ren

t on

land

--

--

--

--

-

Inte

rest

(In

cl. i

nter

est

on u

nita

ry p

ay-

men

ts (

PPP)

)-

--

--

--

--

Tran

sfer

s an

d s

ub

sid

ies

--

--

--

--

-

Soc

ial b

enefi

ts-

--

--

--

--

Oth

er tra

nsfe

rs t

o ho

useh

olds

--

--

--

--

-

Pay

men

ts f

or c

apit

al a

sset

s-

-10

010

010

0-

100

,0%

54

54

Bui

ldin

gs a

nd o

ther

fixe

d st

ruct

ures

--

--

--

--

-

Bui

ldin

gs-

--

--

--

--

Oth

er fi

xed

stru

ctur

es-

--

--

--

--

Mac

hine

ry a

nd e

quip

men

t-

-10

010

010

0-

100,0

%5

45

4

Tran

spor

t eq

uipm

ent

--

--

--

--

-

Oth

er m

achi

nery

and

equ

ipm

ent

--

100

100

100

-10

0,0

%5

45

4

Her

itage

ass

ets

--

--

--

--

-

TOTA

L21

119

-(8

68

)2

0 2

5118

471

1 7

80

91,2

%16

18

415

45

3

Page 144: ANNUAL REPORT - COGTA

142

Ch

ap

ter

5D

ep

art

me

nt

of

C

oo

pe

rati

ve G

ove

rna

nce

Vo

te 0

3

Prog

ram

me

3: G

OVER

NAN

CE A

ND

INTE

RGOV

ERN

MEN

TAL

RELA

TION

S

2014

/15

2013

/14

Adju

sted

Ap

prop

riatio

nSh

iftin

g of

Fu

nds

Vire

men

tFi

nal

Appr

opria

tion

Actu

al

Expe

nditu

reVa

rianc

eEx

pend

iture

as

% o

f fina

l ap

prop

riatio

n

Fina

l Ap

prop

riatio

nAc

tual

ex

pend

iture

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

%R’

000

R’00

0

Su

b p

rogr

amm

e

1. M

anag

emen

t:Gov

erna

nce

16 5

49

1 7

15

(2 7

98)

15 4

66

15 4

66

-

100,0

% 9

800

9 7

99

2.

Inte

rnat

iona

l Rel

atio

ns

Coo

rdin

atio

n 9

915

(

489)

(3 1

07)

6 3

19

6 3

19

-

100,0

% 4

986

4 9

86

3.

Inte

rgov

ernm

enta

l Fis

cal R

elat

ions

13 1

02

525

(1 2

02)

12 4

25

12 4

25

-

100,0

% 2

6 8

58

15 6

29

4.

Gov

erna

nce

and

Publ

ic

Part

icip

atio

n 6

292

(1 7

51)

(1 5

64)

2 9

77

2 9

77

-

100,0

% 3

577

3

509

5.

Sou

th A

fric

an L

ocal

Gov

ernm

ent

Ass

ocia

tion

26 9

04

-

-

26 9

04

26 9

04

-

100,0

% 2

5 9

99

25 9

99

6.

Mun

icip

al D

emar

catio

n B

oard

44 2

30

-

-

44 2

30

44 2

30

-

100,0

% 4

2 1

52

42 1

52

7.

Sou

th A

fric

an C

ities

Net

wor

k 6

071

-

-

6

071

6

071

-

10

0,0

% 1

3 9

09

13 8

88

8.

Uni

ted

Citi

es a

nd L

ocal

G

over

nmen

t of

Afr

ica

5 5

94

-

-

5 5

94

3 2

09

2 3

85

57,4

% 3

208

-

9.

Loca

l Gov

ernm

ent

Equi

tabl

e Sha

re 4

4 4

90 1

45

-

-

44 4

90 1

45

41 5

92 0

70

2 8

98 0

75

93,5

% 4

0 5

95 0

10

38 9

64 2

52

Tota

l for

su

b p

rogr

amm

es 4

4 6

18 8

02

-

(

8 6

71)

44

610

131

4

1 7

09

671

2

90

0 4

60

9

3,5

%4

0 7

25

49

9

39

08

0 2

14

Econ

omic

cla

ssifi

cati

on

Cu

rren

t p

aym

ents

45

83

8

(4

9)

(8

672

) 3

7 1

17

37

117

-

10

0,0

% 3

0 1

78

30

021

Com

pen

sati

on o

f em

plo

yees

25

68

4

(4

9)

(1 2

74)

24

361

2

4 3

61

-

100

,0%

22

251

2

2 1

42

Sal

arie

s an

d w

ages

21 9

13

1 1

69

(1 2

13)

21 8

69

21 8

69

-

100,0

% 1

9 9

83

19 8

74

Soc

ial c

ontr

ibut

ions

3 7

71

(1 2

18)

(61

) 2

492

2 4

92

-

100,0

% 2

268

2 2

68

Page 145: ANNUAL REPORT - COGTA

143

Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

ap

ter

5 •

Pa

rt E

: Fin

an

cia

l In

form

ati

on

Goo

ds

and

ser

vice

s 2

0 1

54

-

(7

39

8)

12

75

6

12

75

6

-

100

,0%

7 9

27

7 8

79

Adm

inis

trat

ive

fees

-

-

-

-

-

-

-

-

-

Adv

ertis

ing

32

(27

) -

5

5

-

10

0,0

% 1

6

16

Min

or a

sset

s 3

5

(28)

-

7

7

-

100,0

% 9

6

96

Aud

it co

sts:

Ext

erna

l -

-

-

-

-

-

-

-

-

Bur

sarie

s: E

mpl

oyee

s -

-

-

-

-

-

-

-

-

Cat

erin

g: D

epar

tmen

tal a

ctiv

ities

1 1

42

(997

) -

1

45

145

-

100,0

% 2

32

232

Com

mun

icat

ion

(G&

S)

462

(121

) -

3

41

341

-

10

0,0

% 3

00

300

Com

pute

r se

rvic

es 3

39

(339)

-

-

-

-

-

-

-

Con

sulta

nts:

Bus

ines

s an

d ad

viso

ry

serv

ices

7 8

68

2 4

47

(2 0

20)

8 2

95

8 2

95

-

100,0

% 1

811

1

811

Infr

astr

uctu

re a

nd p

lann

ing

serv

ices

-

-

-

-

-

-

-

-

-

Labo

rato

ry s

ervi

ces

-

-

-

-

-

-

-

-

-

Sci

entifi

c an

d te

chno

logi

cal s

ervi

ces

-

-

-

-

-

-

-

-

-

Lega

l ser

vice

s -

-

-

-

-

-

-

-

-

Con

trac

tors

1 1

50

(50)

(1 1

00)

-

-

-

-

15

15

Age

ncy

and

supp

ort

/ ou

tsou

rced

se

rvic

es 6

65

(321

) (

34

4)

-

-

-

-

-

-

Ente

rtai

nmen

t 5

(

5)

-

-

-

-

-

-

-

Flee

t se

rvic

es (

incl

udin

g go

vern

men

t m

otor

tra

nspo

rt)

-

11

-

11

11

-

100,0

% 8

8

Hou

sing

-

-

-

-

-

-

-

-

-

Inve

ntor

y: C

loth

ing

mat

eria

l and

ac

cess

orie

s -

-

-

-

-

-

-

-

-

Inve

ntor

y: F

arm

ing

supp

lies

-

-

-

-

-

-

-

-

-

Inve

ntor

y: F

ood

and

food

sup

plie

s -

-

-

-

-

-

-

-

-

Inve

ntor

y: F

uel,

oil a

nd g

as -

1

-

1

1

-

10

0,0

% -

-

Inve

ntor

y: L

earn

er a

nd t

each

er s

up-

port

mat

eria

l -

-

-

-

-

-

-

-

-

Inve

ntor

y: M

ater

ials

and

sup

plie

s 2

(

2)

-

-

-

-

-

2

2

Page 146: ANNUAL REPORT - COGTA

144

Ch

ap

ter

5D

ep

art

me

nt

of

C

oo

pe

rati

ve G

ove

rna

nce

Vo

te 0

3

Inve

ntor

y: M

edic

al s

uppl

ies

-

-

-

-

-

-

-

-

-

Inve

ntor

y: M

edic

ine

-

-

-

-

-

-

-

-

-

Med

sas

inve

ntor

y in

terf

ace

-

-

-

-

-

-

-

-

-

Inve

ntor

y: O

ther

sup

plie

s 3

2

(32)

-

-

-

-

-

-

-

Con

sum

able

sup

plie

s -

1

0

-

10

10

-

100,0

% 6

6

Con

sum

able

: Sta

tione

ry, p

rintin

g an

d of

fice

supp

lies

1 2

80

(100)

(4

41)

739

739

-

100,0

% 4

98

498

Ope

ratin

g le

ases

402

(402)

-

-

-

-

-

-

-

Prop

erty

pay

men

ts -

-

-

-

-

-

-

-

-

Tran

spor

t pr

ovid

ed: D

epar

tmen

tal

activ

ity -

-

-

-

-

-

-

-

-

Trav

el a

nd s

ubsi

sten

ce 4

039

796

(1 9

99)

2 8

36

2 8

36

-

100,0

% 2

803

2 7

55

Trai

ning

and

dev

elop

men

t 2

04

13

4

-

338

338

-

100,0

% 1

251

1

251

Ope

ratin

g pa

ymen

ts 5

5

(53)

-

2

2

-

100,0

% 9

9

Venu

es a

nd f

acili

ties

2 4

42

(922)

(1 4

94)

26

26

-

100,0

% 8

80

880

Ren

tal a

nd h

iring

-

-

-

-

-

-

-

-

-

Inte

rest

and

ren

t on

land

-

-

-

-

-

-

-

-

-

Inte

rest

(In

cl. i

nter

est

on u

nita

ry p

ay-

men

ts (

PPP)

) -

-

-

-

-

-

-

-

-

Ren

t on

land

-

-

-

-

-

-

-

-

-

Tran

sfer

s an

d s

ub

sid

ies

44

572

94

4

49

-

4

4 5

72 9

93

4

1 6

72 5

33

2

90

0 4

60

9

3,5

% 4

0 6

95

278

3

9 0

50

15

0

Prov

ince

s an

d m

unic

ipal

ities

44 4

90 1

45

-

-

44 4

90 1

45

41 5

92 0

70

2 8

98 0

75

93,5

% 4

0 5

95 0

10

38 9

64 2

52

Prov

ince

s -

-

-

-

-

-

-

-

-

Prov

inci

al R

even

ue F

unds

-

-

-

-

-

-

-

-

-

Prov

inci

al a

genc

ies

and

fund

s -

-

-

-

-

-

-

-

-

Mun

icip

aliti

es 4

4 4

90 1

45

-

-

44 4

90 1

45

41 5

92 0

70

2 8

98 0

75

93,5

% 4

0 5

95 0

10

38 9

64 2

52

Mun

icip

al b

ank

acco

unts

44 4

90 1

45

-

-

44 4

90 1

45

41 5

92 0

70

2 8

98 0

75

93,5

% 4

0 5

95 0

10

38 9

64 2

52

Mun

icip

al a

genc

ies

and

fund

s -

-

-

-

-

-

-

-

-

Page 147: ANNUAL REPORT - COGTA

145

Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

ap

ter

5 •

Pa

rt E

: Fin

an

cia

l In

form

ati

on

Dep

artm

enta

l age

ncie

s an

d ac

coun

ts 7

1 1

34

-

-

71 1

34

71 1

34

-

100,0

% 6

8 1

51

68 1

51

Soc

ial s

ecur

ity f

unds

-

-

-

-

-

-

-

-

-

Dep

artm

enta

l age

ncie

s (n

on-b

usi-

ness

ent

ities

) 7

1 1

34

-

-

71 1

34

71 1

34

-

100,0

% 6

8 1

51

68 1

51

Non

-pro

fit in

stitu

tions

11 6

65

-

-

11 6

65

9 2

80

2 3

85

79,6

% 1

7 1

17

13 8

88

Hou

seho

lds

-

49

-

49

49

-

100,0

% 1

5 0

00

3 8

59

Soc

ial b

enefi

ts -

-

-

-

-

-

-

-

-

Oth

er tra

nsfe

rs t

o ho

useh

olds

-

49

-

49

49

-

100,0

% 1

5 0

00

3 8

59

Pay

men

ts f

or c

apit

al a

sset

s 2

0

-

1

21

2

1

-

100

,0%

43

4

3

Bui

ldin

gs a

nd o

ther

fixe

d st

ruct

ures

-

-

-

-

-

-

-

-

-

Bui

ldin

gs -

-

-

-

-

-

-

-

-

Oth

er fi

xed

stru

ctur

es -

-

-

-

-

-

-

-

-

Mac

hine

ry a

nd e

quip

men

t 2

0

-

1

21

21

-

100,0

% 4

3

43

Tran

spor

t eq

uipm

ent

-

-

-

-

-

-

-

-

-

Oth

er m

achi

nery

and

equ

ipm

ent

20

-

1

21

21

-

100,0

% 4

3

43

Pay

men

t fo

r fi

nan

cial

ass

ets

-

-

-

-

-

-

-

-

-

TOTA

L 4

4 6

18 8

02

-

(

8 6

71)

44

610

131

4

1 7

09

671

2

90

0 4

60

9

3,5

% 4

0 7

25

49

9

39

08

0 2

14

Page 148: ANNUAL REPORT - COGTA

146

Ch

ap

ter

5D

ep

art

me

nt

of

C

oo

pe

rati

ve G

ove

rna

nce

Vo

te 0

3

Prog

ram

me

4: N

ATIO

NAL

DIS

ASTE

R M

ANAG

EMEN

T CE

NTRE

2014

/15

2013

/14

Adju

sted

Ap

prop

riatio

nSh

iftin

g of

Fu

nds

Vire

men

tFi

nal

Appr

opria

tion

Actu

al

Expe

nditu

reVa

rianc

eEx

pend

iture

as

% o

f fina

l ap

prop

riatio

n

Fina

l Ap

prop

riatio

nAc

tual

ex

pend

iture

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

%R’

000

R’00

0

Su

b p

rogr

amm

e

1.M

anag

emen

t: H

ead

of D

isas

ter

4 4

62

10 4

58

4 8

20

19 7

40

17 8

51

1 8

89

90,4

% 5

507

5

507

2.L

egis

latio

n,po

licy

and

Com

plia

nce

Man

agem

ent

6 1

31

(1 1

25)

15

5 0

21

5 0

21

-

100,0

% 7

267

7

267

3.P

lann

ing

Coo

rdin

atio

n an

d Sup

port

13 8

06

9 6

26

18 1

87

41 6

19

41 6

19

-

100,0

% 1

0 9

90

10 9

90

4.In

telli

genc

e an

d In

form

atio

n Sys

tem

s M

anag

emen

t 2

6 0

35

(16 8

39)

63

4

9 8

30

9 8

30

-

100,0

% 1

7 7

35

17 4

11

5.D

isas

ter

Rel

ief

Tran

sfer

s 5

60 9

52

-

-

560 9

52

121

483

439 4

69

21,7

% 5

34 6

00

26

4 3

44

6.In

tagr

ated

Dis

aste

r M

anag

emen

t m

on-

itorin

g an

d Ev

alua

tion

Sys

tem

s 2

120

(2 1

20)

-

-

-

-

-

-

-

7.M

unic

ipal

Dis

aste

r R

ecov

ery

Gra

nt 1

94 2

53

-

-

19

4 2

53

190 1

02

4 1

51

97,9

% 1

18 3

40

118

340

Tota

l for

su

b p

rogr

amm

es 8

07 7

59

-

2

3 6

56

8

31 4

15

38

5 9

06

4

45

50

9

46

,4%

69

4 4

39

4

23

85

9

Econ

omic

cla

ssifi

cati

on

Cu

rren

t p

aym

ents

50

207

(

2 7

41)

20

272

6

7 7

38

6

7 7

38

-

10

0,0

% 3

6 4

41

36

117

Com

pen

sati

on o

f em

plo

yees

20

801

(

2 2

01)

111

1

8 7

11

18

711

-

10

0,0

% 1

8 7

27

18

49

9

Sal

arie

s an

d w

ages

18 1

25

(1 4

47)

111

1

6 7

89

16 7

89

-

100,0

% 1

6 8

22

16 5

94

Soc

ial c

ontr

ibut

ions

2 6

76

(75

4)

-

1 9

22

1 9

22

-

100,0

% 1

905

1 9

05

Goo

ds

and

ser

vice

s 2

9 4

06

(

54

0)

20

161

4

9 0

27

49

027

-

10

0,0

% 1

7 7

14

17

618

Adm

inis

trat

ive

fees

-

2

-

2

2

-

100,0

% -

-

Adv

ertis

ing

54

94

-

148

148

-

100,0

% 1

20

120

Min

or a

sset

s 2

21

1 1

81

(39)

1 3

63

1 3

63

-

100,0

% 3

6

36

Aud

it co

sts:

Ext

erna

l -

-

-

-

-

-

-

-

-

Page 149: ANNUAL REPORT - COGTA

147

Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

ap

ter

5 •

Pa

rt E

: Fin

an

cia

l In

form

ati

on

Bur

sarie

s: E

mpl

oyee

s -

-

-

-

-

-

-

5

00

500

Cat

erin

g: D

epar

tmen

tal a

ctiv

ities

286

(2)

-

28

4

28

4

-

100,0

% 5

76

576

Com

mun

icat

ion

(G&

S)

459

(6)

84

537

5

37

-

100,0

% 3

68

368

Com

pute

r se

rvic

es 7

646

(6 7

71)

199

1 0

74

1 0

74

-

100,0

% 6

209

6 1

11

Con

sulta

nts:

Bus

ines

s an

d ad

viso

ry

serv

ices

14 2

81

2 2

33

19 0

40

35 5

54

35 5

54

-

100,0

% 3

887

3

887

Infr

astr

uctu

re a

nd p

lann

ing

serv

ices

-

-

-

-

-

-

-

-

-

Labo

rato

ry s

ervi

ces

-

-

-

-

-

-

-

-

-

Sci

entifi

c an

d te

chno

logi

cal s

ervi

ces

-

-

-

-

-

-

-

-

-

Lega

l ser

vice

s -

-

-

-

-

-

-

1

4

14

Con

trac

tors

-

380

27

407

4

07

-

100,0

% 8

8

Age

ncy

and

supp

ort

/ ou

tsou

rced

ser

-vi

ces

-

-

-

-

-

-

-

-

-

Ente

rtai

nmen

t 1

1

(11)

-

-

-

-

-

-

-

Flee

t se

rvic

es (

incl

udin

g go

vern

men

t m

otor

tra

nspo

rt)

5

67

-

72

72

-

100,0

% 2

1

21

Inve

ntor

y: M

ater

ials

and

sup

plie

s -

-

1

06

106

106

-

100,0

% 2

2

Inve

ntor

y: M

edic

al s

uppl

ies

-

-

-

-

-

-

-

-

-

Inve

ntor

y: M

edic

ine

-

-

-

-

-

-

-

-

-

Med

sas

inve

ntor

y in

terf

ace

-

-

-

-

-

-

-

-

-

Inve

ntor

y: O

ther

sup

plie

s 4

23

(423)

-

-

-

-

-

-

-

Con

sum

able

sup

plie

s -

1

93

4

616

2

550

2 5

50

-

100,0

% 5

5

Con

sum

able

: Sta

tione

ry, p

rintin

g an

d of

fice

supp

lies

677

(

516)

(3)

158

158

-

100,0

% 2

28

228

Ope

ratin

g le

ases

1 6

44

2 3

11

-

3 9

55

3 9

55

-

100,0

% -

-

Prop

erty

pay

men

ts -

-

-

-

-

-

-

-

-

Tran

spor

t pr

ovid

ed: D

epar

tmen

tal a

ctiv

ity -

-

-

-

-

-

-

-

-

Trav

el a

nd s

ubsi

sten

ce 2

887

(

988)

131

2

030

2 0

30

-

100,0

% 3

149

3 1

50

Trai

ning

and

dev

elop

men

t 4

29

(420)

-

9

9

-

100,0

% 1

141

1

142

Ope

ratin

g pa

ymen

ts 2

7

307

-

3

34

33

4

-

100,0

% 5

39

539

Venu

es a

nd f

acili

ties

356

88

-

44

4

44

4

-

100,0

% 9

11

911

Ren

tal a

nd h

iring

-

-

-

-

-

-

-

-

-

Page 150: ANNUAL REPORT - COGTA

148

Ch

ap

ter

5D

ep

art

me

nt

of

C

oo

pe

rati

ve G

ove

rna

nce

Vo

te 0

3

Inte

rest

and

ren

t on

land

-

-

-

-

-

-

-

-

-

Inte

rest

(In

cl. i

nter

est

on u

nita

ry p

ay-

men

ts (

PPP)

) -

-

-

-

-

-

-

-

-

Ren

t on

land

-

-

-

-

-

-

-

-

-

Tran

sfer

s an

d s

ub

sid

ies

75

5 2

05

-

-

7

55

20

5

311

58

5

44

3 6

20

41

,3%

65

2 9

40

3

82

68

4

Prov

ince

s an

d m

unic

ipal

ities

755 2

05

-

-

755 2

05

311

585

443 6

20

41,3

% 6

52 9

40

382 6

84

Prov

ince

s 1

97 3

72

-

-

197

372

-

1

97 3

72

-

-

-

Prov

inci

al R

even

ue F

unds

197

372

-

-

1

97 3

72

-

197

372

-

-

-

Prov

inci

al a

genc

ies

and

fund

s -

-

-

-

-

-

-

-

-

Mun

icip

aliti

es 5

57 8

33

-

-

557

833

311

585

246 2

48

55,9

% 6

52 9

40

382 6

84

Mun

icip

al b

ank

acco

unts

557

833

-

-

557

833

311

585

246 2

48

55,9

% 6

52 9

40

382 6

84

Pay

men

ts f

or c

apit

al a

sset

s 2

347

2

741

3

38

4

8 4

72

6 5

83

1

88

9

77,7

% 5

05

8

5 0

58

Bui

ldin

gs a

nd o

ther

fixe

d st

ruct

ures

-

-

-

-

-

-

-

-

-

Bui

ldin

gs -

-

-

-

-

-

-

-

-

Oth

er fi

xed

stru

ctur

es -

-

-

-

-

-

-

-

-

Mac

hine

ry a

nd e

quip

men

t 2

347

2

700

3 2

87

8 3

34

6 4

45

1 8

89

77,3

% 5

058

5 0

58

Tran

spor

t eq

uipm

ent

-

-

-

-

-

-

-

-

-

Oth

er m

achi

nery

and

equ

ipm

ent

2 3

47

2 7

00

3 2

87

8 3

34

6 4

45

1 8

89

77,3

% 5

058

5 0

58

Her

itage

ass

ets

-

41

97

138

138

-

100,0

% -

-

Spe

cial

ised

mili

tary

ass

ets

-

-

-

-

-

-

-

-

-

Bio

logi

cal a

sset

s -

-

-

-

-

-

-

-

-

Land

and

sub

-soi

l ass

ets

-

-

-

-

-

-

-

-

-

Sof

twar

e an

d ot

her

inta

ngib

le a

sset

s -

-

-

-

-

-

-

-

-

Pay

men

t fo

r fi

nan

cial

ass

ets

-

-

-

-

-

-

-

-

-

Tota

l 8

07 7

59

-

2

3 6

56

8

31 4

15

38

5 9

06

4

45

50

9

46

,4%

69

4 4

39

4

23

85

9

Page 151: ANNUAL REPORT - COGTA

149

Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

ap

ter

5 •

Pa

rt E

: Fin

an

cia

l In

form

ati

on

Prog

ram

me

5: P

ROVI

NCI

AL A

ND

MU

NIC

IPAL

GOV

ERN

MEN

T SY

STEM

S

2014

/15

2013

/14

Adju

sted

Ap

prop

riatio

nSh

iftin

g of

Fu

nds

Vire

men

tFi

nal

Appr

opria

tion

Actu

al

Expe

nditu

reVa

rianc

eEx

pend

iture

as

% o

f fina

l ap

prop

riatio

n

Fina

l Ap

prop

riatio

nAc

tual

ex

pend

iture

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

%R’

000

R’00

0

Su

b p

rogr

amm

e

1. M

anag

emen

t: Pr

ovin

cial

and

Loc

al

Gov

ernm

ent

Sup

port

7 6

96

(1 2

93)

542

6 9

45

6 9

45

-

100,0

% 8

959

8 9

59

2. P

rovi

ncia

l Gov

ernm

ent

Sup

port

and

In

terv

entio

n 6

600

(2 1

52)

11

4 4

59

4 4

05

54

98,8

% 1

0 2

35

10 2

35

3. L

ocal

Gov

ernm

ent

Sup

port

and

Inte

r-ve

ntio

n 1

3 1

99

268

377

1

3 8

44

13 8

44

-

100,0

% 1

9 4

14

19 4

14

4. D

evel

opm

ent

Plan

ning

8 3

61

3 1

77

595

12 1

33

12 1

33

-

100,0

% 1

2 9

57

12 9

57

5. M

unic

ipal

Sys

tem

s Im

prov

emen

t G

rant

252 1

52

-

-

252 1

52

252 1

52

-

100,0

% 2

40 3

07

240 3

07

Tota

l for

su

b p

rogr

amm

es 2

88

00

8

-

1 5

25

2

89

53

3

28

9 4

79

54

10

0,0

% 2

91 8

72

291

872

Econ

omic

cla

ssifi

cati

on

Cu

rren

t p

aym

ents

35

75

6

(6

8)

1 5

25

3

7 2

13

37

213

-

10

0,0

% 5

1 5

17

51

517

Com

pen

sati

on o

f em

plo

yees

22

98

5

(61

8)

521

2

2 8

88

2

2 8

88

-

10

0,0

% 2

3 5

33

2

3 5

33

Sal

arie

s an

d w

ages

20 0

08

45

550

20 6

03

20 6

03

-

100,0

% 2

1 1

42

21 1

42

Soc

ial c

ontr

ibut

ions

2 9

77

(663)

(29)

2 2

85

2 2

85

-

100,0

% 2

391

2

391

Goo

ds

and

ser

vice

s 1

2 7

71

55

0

1 0

04

1

4 3

25

1

4 3

25

-

10

0,0

% 2

7 9

84

2

7 9

84

Adm

inis

trat

ive

fees

-

-

-

-

-

-

-

1

1

Adv

ertis

ing

50

(39)

-

11

11

-

100,0

% 3

48

348

Min

or a

sset

s 5

9

(53)

-

6

6

-

100,0

% 7

9

79

Aud

it co

sts:

Ext

erna

l -

-

-

-

-

-

-

-

-

Bur

sarie

s: E

mpl

oyee

s -

-

-

-

-

-

-

-

-

Cat

erin

g: D

epar

tmen

tal a

ctiv

ities

498

51

-

549

549

-

100,0

% 5

79

579

Page 152: ANNUAL REPORT - COGTA

150

Ch

ap

ter

5D

ep

art

me

nt

of

C

oo

pe

rati

ve G

ove

rna

nce

Vo

te 0

3

Com

mun

icat

ion

(G&

S)

566

(239)

(26)

301

3

01

-

100,0

% 4

24

424

Com

pute

r se

rvic

es 1

00

1 5

50

595

2 2

45

2 2

45

-

100,0

% 1

046

1 0

46

Con

sulta

nts:

Bus

ines

s an

d ad

viso

ry

serv

ices

7 3

02

(1 7

80)

(1)

5 5

21

5 5

21

-

100,0

% 1

6 4

22

16 4

22

Infr

astr

uctu

re a

nd p

lann

ing

serv

ices

-

-

-

-

-

-

-

-

-

Labo

rato

ry s

ervi

ces

-

-

-

-

-

-

-

-

-

Sci

entifi

c an

d te

chno

logi

cal s

ervi

ces

-

-

-

-

-

-

-

-

-

Lega

l ser

vice

s -

-

-

-

-

-

-

-

-

Con

trac

tors

100

(100)

-

-

-

-

-

95

95

Age

ncy

and

supp

ort

/ ou

tsou

rced

ser

-vi

ces

-

18

-

18

18

-

100,0

% 2

33

233

Ente

rtai

nmen

t 2

(

2)

-

-

-

-

-

-

-

Flee

t se

rvic

es (

incl

udin

g go

vern

men

t m

otor

tra

nspo

rt)

-

7

-

7

7

-

100,0

% 2

2

22

Inve

ntor

y: F

ood

and

food

sup

plie

s 1

0

(10)

-

-

-

-

-

-

-

Inve

ntor

y: O

ther

sup

plie

s 2

4

(24)

-

-

-

-

-

-

-

Con

sum

able

sup

plie

s -

-

-

-

-

-

-

1

0

10

Con

sum

able

: Sta

tione

ry, p

rintin

g an

d of

fice

supp

lies

1 1

80

(524)

-

656

656

-

100,0

% 8

83

883

Ope

ratin

g le

ases

16

53

-

69

69

-

100,0

% 8

1

81

Prop

erty

pay

men

ts -

5

-

5

5

-

10

0,0

% 1

10

110

Tran

spor

t pr

ovid

ed: D

epar

tmen

tal a

ctiv

ity -

-

-

-

-

-

-

-

-

Trav

el a

nd s

ubsi

sten

ce 2

015

2

169

436

4 6

20

4 6

20

-

100,0

% 4

266

4 2

66

Trai

ning

and

dev

elop

men

t 4

56

(4

41)

-

15

15

-

100,0

% 1

97

197

Ope

ratin

g pa

ymen

ts 1

4

112

-

1

26

126

-

100,0

% 3

33

333

Venu

es a

nd f

acili

ties

379

(

203)

-

176

1

76

-

100,0

% 2

855

2 8

55

Ren

tal a

nd h

iring

-

-

-

-

-

-

-

-

-

Inte

rest

and

ren

t on

land

-

-

-

-

-

-

-

-

-

Inte

rest

(In

cl. i

nter

est

on u

nita

ry p

ay-

men

ts (

PPP)

) -

-

-

-

-

-

-

-

-

Ren

t on

land

-

-

-

-

-

-

-

-

-

Tran

sfer

s an

d s

ub

sid

ies

25

2 1

52

6

8

-

25

2 2

20

2

52

22

0

-

100

,0%

24

0 3

07

24

0 3

07

Page 153: ANNUAL REPORT - COGTA

151

Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

ap

ter

5 •

Pa

rt E

: Fin

an

cia

l In

form

ati

on

Prov

ince

s an

d m

unic

ipal

ities

252 1

52

-

-

252 1

52

252 1

52

-

100,0

% 2

40 3

07

240 3

07

Prov

ince

s -

-

-

-

-

-

-

-

-

Prov

inci

al R

even

ue F

unds

-

-

-

-

-

-

-

-

-

Prov

inci

al a

genc

ies

and

fund

s -

-

-

-

-

-

-

-

-

Mun

icip

aliti

es 2

52 1

52

-

-

252 1

52

252 1

52

-

100,0

% 2

40 3

07

240 3

07

Mun

icip

al b

ank

acco

unts

252 1

52

-

-

252 1

52

252 1

52

-

100,0

% 2

40 3

07

240 3

07

Sub

sidi

es o

n pr

oduc

ts a

nd p

rodu

ctio

n (p

e) -

-

-

-

-

-

-

-

-

Oth

er tra

nsfe

rs t

o pr

ivat

e en

terp

rises

-

-

-

-

-

-

-

-

-

Non

-pro

fit in

stitu

tions

-

-

-

-

-

-

-

-

-

Hou

seho

lds

-

68

-

68

68

-

100,0

% -

-

Soc

ial b

enefi

ts -

6

8

-

68

68

-

100,0

% -

-

Oth

er tra

nsfe

rs t

o ho

useh

olds

-

-

-

-

-

-

-

-

-

Pay

men

ts f

or c

apit

al a

sset

s 1

00

-

-

1

00

4

6

54

4

6,0

% 4

8

48

Bui

ldin

gs a

nd o

ther

fixe

d st

ruct

ures

-

-

-

-

-

-

-

-

-

Bui

ldin

gs -

-

-

-

-

-

-

-

-

Oth

er fi

xed

stru

ctur

es -

-

-

-

-

-

-

-

-

Mac

hine

ry a

nd e

quip

men

t 1

00

-

-

100

46

54

46,0

% 4

8

48

Tran

spor

t eq

uipm

ent

-

-

-

-

-

-

-

-

-

Oth

er m

achi

nery

and

equ

ipm

ent

100

-

-

100

46

54

46,0

% 4

8

48

Tota

l 2

88

00

8

-

1 5

25

2

89

53

3

28

9 4

79

54

10

0,0

% 2

91 8

72

291

872

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152

Ch

ap

ter

5D

ep

art

me

nt

of

C

oo

pe

rati

ve G

ove

rna

nce

Vo

te 0

3

Prog

ram

me

6: IN

FRAS

TRUC

TURE

AN

D EC

ONOM

IC D

EVEL

OPM

ENT

2014

/15

2013

/14

Adju

sted

Ap

prop

riatio

nSh

iftin

g of

Fu

nds

Vire

men

tFi

nal

Appr

opria

tion

Actu

al

Expe

nditu

reVa

rianc

eEx

pend

iture

as

% o

f fina

l ap

prop

riatio

n

Fina

l Ap

prop

riatio

nAc

tual

ex

pend

iture

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

%R’

000

R’00

0

Su

b p

rogr

amm

e

1. M

anag

emen

t: In

fras

truc

ture

13 1

52

(4 6

04)

(5 1

66)

3 3

82

2 0

47

1 3

35

60,5

% 2

893

2 8

39

2. L

ocal

Eco

nom

ic D

evel

opm

ent

Plan

ning

9 0

18

2 7

33

-

11 7

51

11 7

29

22

99,8

% 9

881

9

880

3. I

nfru

stru

ctur

e D

evel

opm

ent

11 5

72

1 8

71

39

13 4

82

13 4

17

65

99,5

% 1

1 3

79

10 3

06

4. M

unic

ipal

Infr

astr

uctu

re G

rant

14 7

64 0

49

-

-

14 7

64 0

49

14 7

45 4

45

18 6

04

99,9

% 1

4 3

54 5

31

14 2

24 4

47

5. C

omm

unity

Wor

k Pr

ogra

mm

e 2

257

840

-

-

2 2

57 8

40

1 6

49 9

65

607

875

73

,1%

1 7

30 6

08

1 7

21 7

07

6. M

unic

ipal

Infr

astr

uctu

re S

uppo

rt A

gen-

cy 2

94 1

62

-

-

29

4 1

62

29

4 1

62

-

100,0

% 2

62 0

40

261

795

Tota

l for

su

b p

rogr

amm

es 1

7 3

49

79

3

-

(5

127

)17

34

4 6

66

1

6 7

16 7

65

6

27 9

01

96

,4%

16

371

33

2

16

23

0 9

74

Econ

omic

cla

ssifi

cati

on

Cu

rren

t p

aym

ents

2 2

91 1

72

(4

4)

(5

04

2)

2 2

86

08

6

1 6

76 8

76

60

9 2

10

73,4

% 1

75

4 2

85

1

74

4 2

56

Com

pen

sati

on o

f em

plo

yees

50

93

9

(1 1

63

) (

5 0

64

) 4

4 7

12

39

76

0

4 9

52

8

8,9

% 4

7 9

77

38

19

0

Sal

arie

s an

d w

ages

47 7

04

(1 5

10)

(5 0

64)

41 1

30

36 1

79

4 9

51

88,0

% 4

4 6

95

34 9

13

Soc

ial c

ontr

ibut

ions

3 2

35

347

-

3

582

3 5

81

1

100,0

% 3

282

3 2

77

Goo

ds

and

ser

vice

s 2

24

0 2

33

1

119

2

2

2 2

41 3

74

1 6

37 1

16

60

4 2

58

73

,0%

1 7

06

30

8

1 7

06

06

6

Adm

inis

trat

ive

fees

3

5 9

11

-

5 9

14

5 9

14

-

100,0

% 4

20

420

Adv

ertis

ing

1 6

23

86

-

1 7

09

759

950

44,4

% -

-

Min

or a

sset

s 8

68

(56)

-

812

3

0

782

3,7

% 5

7

57

Aud

it co

sts:

Ext

erna

l -

3

269

-

3 2

69

3 2

69

-

100,0

% -

-

Bur

sarie

s: E

mpl

oyee

s -

-

-

-

-

-

-

-

-

Cat

erin

g: D

epar

tmen

tal a

ctiv

ities

1 7

66

(385)

-

1 3

81

730

651

52,9

% 1

196

1 1

96

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153

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op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

ap

ter

5 •

Pa

rt E

: Fin

an

cia

l In

form

ati

on

Com

mun

icat

ion

(G&

S)

1 2

52

(124)

-

1 1

28

69

4

43

4

61,5

% 6

03

603

Com

pute

r se

rvic

es 4

9 0

62

(6 2

19)

-

42 8

43

-

42 8

43

-

327

3

27

Con

sulta

nts:

Bus

ines

s an

d ad

viso

ry

serv

ices

38 1

75

150 5

66

-

188 7

41

181

069

7 6

72

95,9

% 3

32 5

68

332 5

68

Con

trac

tors

1 6

61 0

06

(150 9

92)

-

1 5

10 0

14

1 3

56 2

39

153 7

75

89,8

% 1

359 2

62

1 3

59 0

75

Age

ncy

and

supp

ort

/ ou

tsou

rced

ser

-vi

ces

862

(27

7)

-

585

585

-

100,0

% 4

78

478

Ente

rtai

nmen

t -

-

-

-

-

-

-

-

-

Flee

t se

rvic

es (

incl

udin

g go

vern

men

t m

otor

tra

nspo

rt)

-

22

-

22

22

-

100,0

% 6

2

61

Hou

sing

-

-

-

-

-

-

-

-

-

Inve

ntor

y: C

loth

ing

mat

eria

l and

acc

es-

sorie

s -

2

2 4

86

-

22 4

86

22 4

86

-

100,0

% -

-

Inve

ntor

y: F

arm

ing

supp

lies

-

-

-

-

-

-

-

-

-

Inve

ntor

y: F

ood

and

food

sup

plie

s -

-

-

-

-

-

-

-

-

Inve

ntor

y: F

uel,

oil a

nd g

as -

9

-

9

9

-

10

0,0

% 1

0

10

Inve

ntor

y: L

earn

er a

nd t

each

er s

uppo

rt

mat

eria

l -

-

-

-

-

-

-

-

-

Inve

ntor

y: M

ater

ials

and

sup

plie

s 4

60 0

00

(53 0

72)

-

406 9

28

28 1

31

378

797

6,9

% 1

00

100

Inve

ntor

y: M

edic

al s

uppl

ies

-

-

-

-

-

-

-

-

-

Inve

ntor

y: M

edic

ine

-

-

-

-

-

-

-

-

-

Med

sas

inve

ntor

y in

terf

ace

-

-

-

-

-

-

-

-

-

Inve

ntor

y: O

ther

sup

plie

s 2

70

-

-

270

-

2

70

-

-

-

Con

sum

able

sup

plie

s -

7

-

7

7

-

10

0,0

% 8

0

80

Con

sum

able

: Sta

tione

ry, p

rintin

g an

d of

fice

supp

lies

10 2

55

(230)

(102)

9 9

23

408

9 5

15

4,1

% 8

02

772

Ope

ratin

g le

ases

1 7

56

(33)

-

1 7

23

99

1 6

24

5,7

% 8

3

83

Prop

erty

pay

men

ts -

-

-

-

-

-

-

-

-

Tran

spor

t pr

ovid

ed: D

epar

tmen

tal a

ctiv

ity -

-

-

-

-

-

-

-

-

Trav

el a

nd s

ubsi

sten

ce 1

1 7

65

299

124

12 1

88

5 8

40

6 3

48

47,9

% 8

877

8

853

Trai

ning

and

dev

elop

men

t 1

81

30 1

89

-

30 3

70

30 3

70

-

100,0

% 5

8

58

Ope

ratin

g pa

ymen

ts 9

1

93

-

202

202

-

100,0

% 1

9

19

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154

Ch

ap

ter

5D

ep

art

me

nt

of

C

oo

pe

rati

ve G

ove

rna

nce

Vo

te 0

3

Venu

es a

nd f

acili

ties

1 3

80

(530)

-

850

253

597

29,8

% 1

306

1 3

06

Tran

sfer

s an

d s

ub

sid

ies

15

05

8 4

71

-

-

15

05

8 4

71

15

03

9 8

45

1

8 6

26

9

9,9

% 1

4 6

16 9

71

14

48

6 6

42

Prov

ince

s an

d m

unic

ipal

ities

14 7

64 0

49

-

-

14 7

64 0

49

14 7

45 4

45

18 6

04

99,9

% 1

4 3

54 5

31

14 2

24 4

47

Prov

ince

s -

-

-

-

-

-

-

-

-

Prov

inci

al R

even

ue F

unds

-

-

-

-

-

-

-

-

-

Prov

inci

al a

genc

ies

and

fund

s -

-

-

-

-

-

-

-

-

Mun

icip

aliti

es 1

4 7

64 0

49

-

-

14 7

64 0

49

14 7

45 4

45

18 6

04

99,9

% 1

4 3

54 5

31

14 2

24 4

47

Mun

icip

al b

ank

acco

unts

14 7

64 0

49

-

-

14 7

64 0

49

14 7

45 4

45

18 6

04

99,9

% 1

4 3

54 5

31

14 2

24 4

47

Mun

icip

al a

genc

ies

and

fund

s -

-

-

-

-

-

-

-

-

Dep

artm

enta

l age

ncie

s an

d ac

coun

ts 2

94 1

62

-

-

29

4 1

62

29

4 1

62

-

100,0

% 2

62 0

40

261

795

Soc

ial s

ecur

ity f

unds

-

-

-

-

-

-

-

-

-

Dep

artm

enta

l age

ncie

s (n

on-b

usin

ess

entit

ies)

29

4 1

62

-

-

29

4 1

62

29

4 1

62

-

100,0

% 2

62 0

40

261

795

Hig

her

educ

atio

n in

stitu

tions

-

-

-

-

-

-

-

-

-

Fore

ign

gove

rnm

ents

and

inte

rnat

iona

l or

gani

satio

ns 2

60

-

-

260

238

22

91,5

% 4

00

400

Pay

men

ts f

or c

apit

al a

sset

s 1

50

4

4

(8

5)

10

9

44

6

5

40

,4%

76

7

6

Bui

ldin

gs a

nd o

ther

fixe

d st

ruct

ures

-

-

-

-

-

-

-

-

-

Bui

ldin

gs -

-

-

-

-

-

-

-

-

Oth

er fi

xed

stru

ctur

es -

-

-

-

-

-

-

-

-

Mac

hine

ry a

nd e

quip

men

t 1

50

44

(85)

109

44

65

40,4

% 7

6

76

Tran

spor

t eq

uipm

ent

-

-

-

-

-

-

-

-

-

Oth

er m

achi

nery

and

equ

ipm

ent

150

44

(85)

109

44

65

40,4

% 7

6

76

Tota

l 1

7 3

49

79

3

-

(5

127

)17

34

4 6

66

1

6 7

16 7

65

6

27 9

01

96

,4%

16

371

33

2

16

23

0 9

74

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155

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op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

ap

ter

5 •

Pa

rt E

: Fin

an

cia

l In

form

ati

on

Prog

ram

me

7: T

RADI

TION

AL A

FFAI

RS

2014

/15

2013

/14

Adju

sted

Ap

prop

riatio

nSh

iftin

g of

Fu

nds

Vire

men

tFi

nal

Appr

opria

tion

Actu

al

Expe

nditu

reVa

rianc

eEx

pend

iture

as

% o

f fina

l ap

prop

riatio

n

Fina

l Ap

prop

riatio

nAc

tual

ex

pend

iture

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

%R’

000

R’00

0

Su

b p

rogr

amm

e

1.Tr

aditi

onal

Aff

airs

115 8

64

--

115 8

64

115 8

64

-10

0.0

%11

1 7

02

111 7

02

Tota

l for

su

b p

rogr

amm

es11

5 8

64

--

115

86

411

5 8

64

-10

0%

1117

02

1117

02

Tran

sfer

s an

d s

ub

sid

ies

115 8

64

--

115 8

64

115 8

64

-10

0%

111 7

02

111 7

02

Mun

icip

al a

genc

ies

and

fund

s-

--

--

--

--

Dep

artm

enta

l age

ncie

s an

d ac

coun

ts11

5 8

64

--

115 8

64

115 8

64

-10

0%

111 7

02

111 7

02

Soc

ial s

ecur

ity f

unds

--

--

--

--

-

Dep

artm

enta

l age

ncie

s (n

on-b

usin

ess

entit

ies)

115 8

64

--

115 8

64

115 8

64

-10

0%

111 7

02

111 7

02

Pay

men

t fo

r fi

nan

cial

ass

ets

--

--

--

--

-

TOTA

L11

5 8

64

115

86

411

1 7

02

111

70

2

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156

Department of Cooperative Governance Vote 03

Notes to the Appropriation Statement for the year ended 31 March 2015

1. Detail of transfers and subsidies as per Appropriation Act (after Virement):Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-H) to the Annual Financial Statements.

2. Detail of specifically and exclusively appropriated amounts voted (after Virement):Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.

3. Detail on payments for financial assetsDetail of these transactions per programme can be viewed in the note on Payments for financial assets to the Annual Financial Statements.

4. Explanations of material variances from Amounts Voted (after Virement):

4.1 Per programme Final Appropriation

Actual Expenditure Variance R’000

Variance as a % of Final

Appropriation

R’000 R’000 R’000 %

Administration 242 025 241 628 397 100%

Policy, Research and Knowledge Manage-ment

20 251 18 471 1 780 91%

Governance and Intergovernmental Rela-tions

44 610 131 41 709 671 2 900 460 93%

National Disaster Management Centre 829 417 385 774 443 643 47%

Provincial and Municipal Government Systems

289 533 289 479 54 100%

Infrastructure and Economic Development 17 344 666 16 716 765 627 901 96%

Traditional Affairs 115 864 115 864 0 100%

Administration In line with expenditure

Policy, Research and Knowledge Manage-ment

The under-spending is mainly due to the delay in the receipt of some invoices for completed projects and the delays that emanated from the implementation of the procurement plan

Governance and Intergovernmental Rela-tions

The under-spending is mainly due to the withholding of equitable share grants from some municipalities, which did not perform according to the DORA requirements as well as delays in the transfer of funds to the United Cities & Local Government of Africa, because the claim was not submitted to the Department

National Disaster Management Centre The under-spending is mainly due to the uncertainty with the payment of disaster relief grant. This grant is only paid when disasters are de-clared and with the approval of National Treasury.

Provincial and Municipal Government Systems

In line with expenditure

Infrastructure and Economic Development under-spending is mainly due to the withholding of Municipal Infra-structure Grant Fund, for one municipality and due to delays in the receipt of invoices from the Implementing Agents and delays with the procurement processes of the material used by participants, at site level.

Traditional Affairs In line with expenditure

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Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

ap

ter

5• P

art

E: F

ina

nci

al I

nfo

rma

tio

n

4.2 Per economic classification Final Appropriation

Actual Expenditure Variance

Variance as a % of Final

Appropriation

R’000 R’000 R’000 R’000

Current expenditure

Compensation of employees 239 394 234 442 4 952 98%

Goods and services 2 438 522 1 832 121 606 401 75%

Interest and rent on land

Transfers and subsidies

Provinces and municipalities 60 261 609 56 901 276 3 360 333 94%

Departmental agencies and accounts 481 895 481 895 0 100%

Higher education institutions

Public corporations and private enterprises

Foreign governments and international organ-isations

260 238 22 92%

Non-profit institutions 11 665 9 280 2 385 80%

Households 357 357 0 100%

Payments for capital assets

Buildings and other fixed structures

Machinery and equipment 19 421 17 413 2 008 90%

Heritage assets 138 138 0 100%

Specialised military assets

Biological assets

Land and subsoil assets

Software and other intangible assets

Payments for financial assets 263 263 0 100%

Goods and Services:Under-spending is due to delays in the receipt of invoices from the Implementing Agents, delays with the procurement processes of the material used by participants at site level and the change in the Business model for the payment of participants:

Transfers and Subsidies:The under-spending is mainly due to the withholding of Local Government Equitable Share and Municipal Infrastructure Grants in respect of some municipalities, which did not perform according to the DORA requirements as well as Disaster Relief funds which were not transferred as projected.

Notes to the Appropriation Statement for the year ended 31 March 2015

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158

Department of Cooperative Governance Vote 03

4.3 Per conditional grant Final Appropriation

Actual Expenditure Variance

Variance as a % of Final

Appropriation

R’000 R’000 R’000 R’000

Munisipal Infrastructure Grant 14 764 049 14 745 445 18 604 100%

Munisipal Systems Improvement Grant 252 152 252 152 0 100%

Provincial Disaster Grant 197 372 85 951 111 421 44%

Municipal Disaster Grant 166 208 121 483 44 725 73%

Disaster Recovery Grant 194 253 190 102 4 151 98%

The under-spending is mainly due to the withholding of Local Government Equitable Share and Municipal Infrastructure Grants in respect of some municipalities, which did not perform according to the DORA requirements as well as Disaster Relief funds which were not transferred as projected.

Notes to the Appropriation Statement for the year ended 31 March 2015

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Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

ap

ter

5• P

art

E: F

ina

nci

al I

nfo

rma

tio

n

Statement of Financial Performance for the year ended 31 March 2015

Note 2014/15 2013/14R’000 R’000

REVENUE

Annual appropriation 1 63 453 885 58 458 907

Statutory appropriation - -

Departmental revenue 2 1 916 1 220

Aid assistance 3

TOTAL REVENUE 63 455 801 58 460 127

EXPENDITURE

Current expenditure

Compensation of employees 4 234 443 269 740

Goods and services 5 1 832 166 1 923 124

Aid assistance 3 1598

Total current expenditure 2 066 609 2 194 462

Transfers and subsidies

Transfers and subsidies 7 57 393 039 54 193 279

Aid assistance 3

Total transfers and subsidies 57 393 039 54 193 279

Expenditure for capital assets

Tangible assets 8 17 874 15 011

Total expenditure for capital assets 17 874 15 011

Unauthorised expenditure approved without funding 9 - -

Payments for financial assets 6 262 418

TOTAL EXPENDITURE 59 477 784 56 403 170

SURPLUS/(DEFICIT) FOR THE YEAR 3 978 017 2 056 957

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Reconciliation of Net Surplus/(Deficit) for the yearVoted funds 3 976 101 2 057 335

Annual appropriation 613 361 26 237

Conditional grants 3 362 740 2 031 098

Unconditional grants

Departmental revenue and NRF Receipts 14 1 916 1 220

Aid assistance 3 (1 598)

SURPLUS/(DEFICIT) FOR THE YEAR 3 978 017 2 056 957

Statement of Financial Performance for the year ended 31 March 2015

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Statement of Financial Position as at 31 March 2015

Note 2014/15 2013/14R’000 R’000

ASSETS

Current assets 4 063 535 2 092 966

Unauthorised expenditure 9 1 123 1 123

Cash and cash equivalents 10 3 972 338 1 952 942

Prepayments and advances 11 226 278

Receivables 12 89 848 138 623

Non-current assets 4 738 -

Receivables 12 4 738 -

TOTAL ASSETS 4 068 273 2 092 966

LIABILITIES

Current liabilities 4 068 273 2 092 966

Voted funds to be surrendered to the Revenue Fund 13 3 976 101 2 056 685

Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund 14 52 906

Bank overdraft - -

Payables 15 92 120 557

Aid assistance repayable 3 - 34 818

Non-current liabilities

Payables - -

TOTAL LIABILITIES 4 068 273 2 092 966

NET ASSETS

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Statement of Changes in Net Assets for the year ended 31 March 2015

Note 2014/15 2013/14R’000 R’000

Capitalisation Reserves

Opening balance

Transfers:

Movement in Equity

Movement in Operational Funds

Other movements

Closing balance - -

Recoverable revenue

Opening balance

Transfers:

Irrecoverable amounts written off

Debts revised

Debts recovered (included in departmental receipts)

Debts raised

Closing balance - -

Retained funds

Opening balance

Transfer from voted funds to be surrendered (Parliament/Legislatures ONLY)

Utilised during the year

Other transfers

Closing balance - -

Revaluation Reserve

Opening balance

Revaluation adjustment (Housing departments)

Transfers

Other

Closing balance - -

TOTAL - -

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Cash Flow Statement for the year ended 31 March 2015

Note 2014/15 2013/14R’000 R’000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts 63 455 748 58 459 461

Annual appropriated funds received 1.1 63 453 885 58 458 257

Departmental revenue received 2 1 862 1 204

Interest received 2.2 1 -

Net (increase)/decrease in working capital 135 652 (132 805)

Surrendered to Revenue Fund (2 059 455) (1 419 554)

Surrendered to RDP Fund/Donor (34 818) (1 392)

Current payments (2 066 609) (2 194 462)

Interest paid - -

Payments for financial assets (262) (418)

Transfers and subsidies paid (57 393 039) (54 193 279)

Net cash flow available from operating activities 16 2 037 217 517 551

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for capital assets 8 (17 874) (15 011)

Proceeds from sale of capital assets 2.3 53 16

(Increase)/decrease in loans - -

(Increase)/decrease in investments - -

(Increase)/decrease in other financial assets - -

Net cash flows from investing activities (17 821) (14 995)

CASH FLOWS FROM FINANCING ACTIVITIES

Distribution/dividend received - -

Increase/(decrease) in net assets - -

Increase/(decrease) in non-current payables - -

Net cash flows from financing activities - -

Net increase/(decrease) in cash and cash equivalents 2 019 396 502 556

Cash and cash equivalents at beginning of period 1 952 942 1 450 386

Cash and cash equivalents at end of period 17 3 972 338 1 952 942

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Accounting Policies for the year ended 31 March 2015

Summary of significant accounting policies

The financial statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated.

The historical cost convention has been used, except where otherwise indicated. Management has used assessments and estimates in preparing the annual financial statements. These are based on the best information available at the time of preparation.

Where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the financial statements and to comply with the statutory requirements of the Public Finance Management Act (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the PFMA and the annual Division of Revenue Act. 1 Basis of preparation

The financial statements have been prepared in accordance with the Modified Cash Standard. 2 Going concern

The financial statements have been prepared on a going concern basis.3 Presentation currency

Amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department.

4 Rounding

Unless otherwise stated financial figures have been rounded to the nearest one thousand Rand (R’000).5 Foreign currency translation

Cash flows arising from foreign currency transactions are translated into South African Rands using the exchange rates prevailing at the date of payment / receipt.

6 Comparative information6.1 Prior period comparative information

Prior period comparative information has been presented in the current year’s financial statements. Where necessary figures included in the prior period financial statements have been reclassified to ensure that the format in which the information is presented is consistent with the format of the current year’s financial statements.

6.2 Current year comparison with budget

A comparison between the approved, final budget and actual amounts for each programme and economic classification is included in the appropriation statement.

7 Revenue7.1 Appropriated funds

Appropriated funds comprises of departmental allocations as well as direct charges against the revenue fund (i.e. statutory appropriation).

Appropriated funds are recognised in the statement of financial performance on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the statement of financial performance on the date the adjustments become effective.

The net amount of any appropriated funds due to / from the relevant revenue fund at the reporting date is recognised as a payable / receivable in the statement of financial position.

7.2 Departmental revenue

Departmental revenue is recognised in the statement of financial performance when received and is subsequently paid into the relevant revenue fund, unless stated otherwise.

Any amount owing to the relevant revenue fund at the reporting date is recognised as a payable in the statement of financial position.

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7.3 Accrued departmental revenue

Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the notes to the financial statements when:

§ it is probable that the economic benefits or service potential associated with the transaction will flow to the department; and

§ the amount of revenue can be measured reliably.

The accrued revenue is measured at the fair value of the consideration receivable.

Accrued tax revenue (and related interest and / penalties) is measured at amounts receivable from collecting agents.

8 Expenditure8.1 Compensation of employees8.1.1 Salaries and wages

Salaries and wages are recognised in the statement of financial performance on the date of payment. 8.1.2 Social contributions

Social contributions made by the department in respect of current employees are recognised in the statement of financial performance on the date of payment.

Social contributions made by the department in respect of ex-employees are classified as transfers to households in the statement of financial performance on the date of payment.

8.2 Other expenditure

Other expenditure (such as goods and services, transfers and subsidies and payments for capital assets) is recognised in the statement of financial performance on the date of payment. The expense is classified as a capital expense if the total consideration paid is more than the capitalisation threshold.

8.3 Accrued expenditure payable

Accrued expenditure payable is recorded in the notes to the financial statements when the goods are received or, in the case of services, when they are rendered to the department.

Accrued expenditure payable is measured at cost.8.4 Leases8.4.1 Operating leases

Operating lease payments made during the reporting period are recognised as current expenditure in the statement of financial performance on the date of payment.

The operating lease commitments are recorded in the notes to the financial statements. 8.4.2 Finance leases

Finance lease payments made during the reporting period are recognised as capital expenditure in the statement of financial performance on the date of payment.

The finance lease commitments are recorded in the notes to the financial statements and are not apportioned between the capital and interest portions.

Finance lease assets acquired at the end of the lease term are recorded and measured at the lower of:

§ cost, being the fair value of the asset; or

§ the sum of the minimum lease payments made, including any payments made to acquire ownership at the end of the lease term, excluding interest.

9 Aid Assistance9.1 Aid assistance received

Aid assistance received in cash is recognised in the statement of financial performance when received. In-kind aid assistance is recorded in the notes to the financial statements on the date of receipt and is measured at fair value.

Aid assistance not spent for the intended purpose and any unutilised funds from aid assistance that are required to be refunded to the donor are recognised as a payable in the statement of financial position.

9.2 Aid assistance paid

Aid assistance paid is recognised in the statement of financial performance on the date of payment. Aid assistance payments made prior to the receipt of funds are recognised as a receivable in the statement of financial position.

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10 Cash and cash equivalents

Cash and cash equivalents are stated at cost in the statement of financial position.

Bank overdrafts are shown separately on the face of the statement of financial position.

For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts.

11 Prepayments and advances

Prepayments and advances are recognised in the statement of financial position when the department receives or disburses the cash.

Prepayments and advances are initially and subsequently measured at cost.12 Loans and receivables

Loans and receivables are recognised in the statement of financial position at cost plus accrued interest, where interest is charged, less amounts already settled or written-off.

13 Investments

Investments are recognised in the statement of financial position at cost.14 Impairment of financial assets

Where there is an indication of impairment of a financial asset, an estimation of the reduction in the recorded carrying value, to reflect the best estimate of the amount of the future economic benefits expected to be received from that asset, is recorded in the notes to the financial statements.

15 Payables

Loans and payables are recognised in the statement of financial position at cost.16 Capital Assets16.1 Immovable capital assets

§ Immovable capital assets are initially recorded in the notes to the financial statements at cost. Immovable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition.

§ Where the cost of immovable capital assets cannot be determined accurately, the immovable capital assets are measured at R1 unless the fair value of the asset has been reliably estimated, in which case the fair value is used.

§ All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.

Immovable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.

Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the immovable asset is recorded by another department in which case the completed project costs are transferred to that department.

16.2 Movable capital assets

§ Movable capital assets are initially recorded in the notes to the financial statements at cost. Movable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition.

§ Where the cost of movable capital assets cannot be determined accurately, the movable capital assets are measured at fair value and where fair value cannot be determined; the movable assets are measured at R1.

§ All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.

§ Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.

Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the movable asset is recorded by another department/entity in which case the completed project costs are transferred to that department.

Accounting Policies for the year ended 31 March 2015

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16.3 Intangible assets

§ Intangible assets are initially recorded in the notes to the financial statements at cost. Intangible assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition.

§ Internally generated intangible assets are recorded in the notes to the financial statements when the department commences the development phase of the project.

§ Where the cost of intangible assets cannot be determined accurately, the intangible capital assets are measured at fair value and where fair value cannot be determined; the intangible assets are measured at R1.

§ All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.

§ Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment.

Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the intangible asset is recorded by another department/entity in which case the completed project costs are transferred to that department.

17 Provisions and Contingents17.1 Provisions

Provisions are recorded in the notes to the financial statements when there is a present legal or constructive obligation to forfeit economic benefits as a result of events in the past and it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation and a reliable estimate of the obligation can be made. The provision is measured as the best estimate of the funds required to settle the present obligation at the reporting date.

17.2 Contingent liabilities

Contingent liabilities are recorded in the notes to the financial statements when there is a possible obligation that arises from past events, and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department or when there is a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or the amount of the obligation cannot be measured reliably

17.3 Contingent assets

Contingent assets are recorded in the notes to the financial statements when a possible asset arises from past events, and whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department

17.4 Commitments

Commitments are recorded at cost in the notes to the financial statements when there is a contractual arrangement or an approval by management in a manner that raises a valid expectation that the department will discharge its responsibilities thereby incurring future expenditure that will result in the outflow of cash

18 Unauthorised expenditure

Unauthorised expenditure is recognised in the statement of financial position until such time as the expenditure is either:

§ approved by Parliament or the Provincial Legislature with funding and the related funds are received; or

§ approved by Parliament or the Provincial Legislature without funding and is written off against the appropriation in the statement of financial performance; or

§ transferred to receivables for recovery.

Unauthorised expenditure is measured at the amount of the confirmed unauthorised expenditure.

Accounting Policies for the year ended 31 March 2015

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19 Fruitless and wasteful expenditure

Fruitless and wasteful expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the total value of the fruitless and or wasteful expenditure incurred.

Fruitless and wasteful expenditure is removed from the notes to the financial statements when it is resolved or transferred to receivables for recovery.

Fruitless and wasteful expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.

20 Irregular expenditure

Irregular expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the value of the irregular expenditure incurred unless it is impracticable to determine, in which case reasons therefor are provided in the note.

Irregular expenditure is removed from the note when it is either condoned by the relevant authority, transferred to receivables for recovery or not condoned and is not recoverable.

Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.

21 Changes in accounting policies, accounting estimates and errors

Changes in accounting policies that are effected by management have been applied retrospectively in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the change in policy. In such instances the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.

Changes in accounting estimates are applied prospectively in accordance with MCS requirements.

Correction of errors is applied retrospectively in the period in which the error has occurred in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the error. In such cases the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.

22 Events after the reporting date

Events after the reporting date that are classified as adjusting events have been accounted for in the financial statements. The events after the reporting date that are classified as non-adjusting events after the reporting date have been disclosed in the notes to the financial statements.

23 Capitalisation reserve

The capitalisation reserve comprises of financial assets and/or liabilities originating in a prior reporting period but which are recognised in the statement of financial position for the first time in the current reporting period. Amounts are recognised in the capitalisation reserves when identified in the current period and are transferred to the National/Provincial Revenue Fund when the underlying asset is disposed and the related funds are received

24 Recoverable revenue

Amounts are recognised as recoverable revenue when a payment made in a previous financial year becomes recoverable from a debtor in the current financial year. Amounts are either transferred to the National/Provincial Revenue Fund when recovered or are transferred to the statement of financial performance when written-off.

25 Related party transactions

A related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party. Related party transactions are recorded in the notes to the financial statements when the transaction is not at arm’s length.

Accounting Policies for the year ended 31 March 2015

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Notes to the Annual Financial Statements for the year ended 31 March 2015

1. Annual Appropriation

1.1 Annual AppropriationIncluded are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments (Voted funds) and Provincial Departments:

2014/15 2013/14

Final Appropriation

Actual Funds Received

Funds not requested/

not received

Appropriationreceived

R’000 R’000 R’000 R’000

Administration 242 025 244 722 (2 697) 211 230Policy,Research and knowledge manangement

20 251 20 251 - 52 183

Governance and Intergovernmental Relations

44 610 131 44 609 936 195 40 725 499

National Disaster Manangement centre

831 415 829 417 1 998 694 439

Provincial and municipal government systems

289 533 289 153 380 291 872

Infrastructure and economic development

17 344 666 17 344 542 124 16 371 332

Traditional Affairs 115 864 115 864 - 111 702

Total 63 453 885 63 453 885 - 58 458 257

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2. Departmental revenue Note 2014/15 2013/14

R’000 R’000

Tax revenue

Sales of goods and services other than capital assets 2.1 174 175

Fines, penalties and forfeits - -

Interest, dividends and rent on land 2.2 1 -Sales of capital assets 2.3 53 16Transactions in financial assets and liabilities 2.4 1 688 1 029

Transfer received - -

Total revenue collected 1 916 1 220

Less: Own revenue included in appropriation 19

Departmental revenue collected 1 916 1 220

2.1 Sales of goods and services other than capital assetsNote 2014/15 2013/14

2 R’000 R’000

Sales of goods and services produced by the department 173 174

Sales by market establishment 173 94

Administrative fees - -

Other sales - 80

Sales of scrap, waste and other used current goods 1 1

Total 174 175

2.2 Interest, dividends and rent on land Note 2014/15 2013/14

2 R’000 R’000

Interest 1 -

Dividends - -

Rent on land - -

Total 1 -

Notes to the Annual Financial Statements for the year ended 31 March 2015

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2.3 Sale of capital assetsNote 2014/15 2013/14

2 R’000 R’000

Tangible assets 53 16

Buildings and other fixed structures 41 - -

Machinery and equipment 53 16

Specialised military assets - -

Land and subsoil assets - -

Biological assets - -

Intangible assets - -

Software - -

Mastheads and publishing titles - -

Patents, licences, copyright, brand names, trademarks - -

Recipes, formulae, prototypes, designs, models - -

Services and operating rights - -

-

Total 53 16

2.4 Transactions in financial assets and liabilitiesNote 2014/15 2013/14

2 R’000 R’000

Loans and advances

Receivables

Forex gain

Stale cheques written back

Other Receipts including Recoverable Revenue 1 688 1 029

- -

Total 1 688 1 029

3. Aid assistance Note 2014/15 2013/14

R’000 R’000

Opening Balance 34 818 34 818

Prior period error - -

As restated 34 818 34 818

Transferred from statement of financial performance - -

Transfers to or from retained funds - -

Paid during the year (34 818) -

Closing Balance - 34 818

Notes to the Annual Financial Statements for the year ended 31 March 2015

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3.1 Analysis of balance by source2014/15 2013/14

Note R’000 R’000Aid assistance from RDP 3 - 34 818

Aid assistance from other sources - -

CARA - -

Closing balance - 34 818

3.2 Analysis of balance2014/15 2013/14

Note R’000 R’000Aid assistance receivable 3 - -

Aid assistance prepayments - -

Aid assistance unutilised - -

Aid assistance repayable - -

- 34 818

Closing balance 34 818

4. Compensation of employees

4.1 Salaries and WagesNote 2014/15 2013/14

R’000 R’000

Basic salary 153 397 175 455

Performance award 2 138 3 006

Service Based 748 877

Compensative/circumstantial 4 863 6070

Periodic payments 523 1 602

Other non-pensionable allowances 49 777 57 255

Total 211 446 244 265

Notes to the Annual Financial Statements for the year ended 31 March 2015

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4.2 Social contributionsNote 2014/15 2013/14

R’000 R’000

Employer contributions

Pension 18 375 19 793

Medical 4 595 5 649

UIF - 1

Bargaining council 27 32

Official unions and associations - -

Insurance - -

Total 22 997 25 475

Total compensation of employees 234 443 269 740

Average number of employees 429 597

5. Goods and services Note 2014/15 2013/14

R’000 R’000

Administrative fees 5 964 67

Advertising 2 475 4 352

Minor assets 5.1 2 807 1 456

Bursaries (employees) 937 1 696

Catering 2 860 8 042

Communication 5 943 10 242

Computer services 5.2 17 801 21 891

Consultants: Business and advisory services 1 607 107 365 604

Infrastructure and planning services - -

Laboratory services - -

Scientific and technological services - -

Legal services - -

Contractors - 1 361 366

Agency and support / outsourced services - 715

Entertainment - -

Audit cost – external 5.3 6 872 7 571

Fleet services 1 967 1 784

Inventory - -Consumables 5.4 62 701 8 342

Housing - -

Operating leases 35 650 38 673

Property payments 5.5 14 630 9 031

Rental and hiring - 17

Transport provided as part of the departmental activities - 41

Travel and subsistence 5.6 29 295 57 717

Notes to the Annual Financial Statements for the year ended 31 March 2015

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Venues and facilities 2 128 11 767

Training and development 31 118 3 667

Other operating expenditure 5.7 1 911 2 554

Total 1 832 166 1 923 124

5.1 Minor assetsNote 2014/15 2013/14

5 R’000 R’000

Tangible assets 2 807 1 456

Buildings and other fixed structures -

Biological assets -

Heritage assets -

Machinery and equipment 2 807 1 456

Transport assets

Total 2 807 1 456

5.2 Computer servicesNote 2014/15 2013/14

5 R’000 R’000

SITA computer services 7 300 7 222

External computer service providers 10 501 14 669

Total 17 801 21 891

5.3 Audit cost – External Note 2014/15 2013/14

5 R’000 R’000

Regularity audits 6 488 7 187

Performance audits - -

Investigations 384 384

Environmental audits - -

Computer audits - -

Total 6 872 7 571

Other supplies 5.4.1 - -

Total - -

Notes to the Annual Financial Statements for the year ended 31 March 2015

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5.4 ConsumablesNote 2014/15 2013/14

5 R’000 R’000

Consumable supplies 57 322 837

Uniform and clothing 292 10

Household supplies 259 226

Building material and supplies - 1

Communication accessories - -

IT consumables 4 112 75

Other consumables 52 659 525

Stationery, printing and office supplies 5 379 7 505

Total 62 701 8 342

5.5 Property paymentsNote 2014/15 2013/14

5 R’000 R’000

Municipal services 9 915 5 690

Property management fees 2 426 1 347

Property maintenance and repairs - -

Other 2 289 1 994

Total 14 630 9 031

5.6 Travel and subsistenceNote 2014/15 2013/14

5 R’000 R’000

Local 21 823 53 776

Foreign 7 472 3 941

Total 29 295 57 717

5.7 Other operating expenditureNote 2014/15 2013/14

5 R’000 R’000

Professional bodies, membership and subscription fees 2 30

Resettlement costs 313 238

Other 1 596 2 286

Total 1 911 2 554

Notes to the Annual Financial Statements for the year ended 31 March 2015

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6. Payments for financial assetsNote 2014/15 2013/14

R’000 R’000

Material losses through criminal conduct - -

Theft - -

Other material losses - -

Purchase of equity - -

Extension of loans for policy purposes - -

-Other material losses written off 6.1 262 418

Debts written off - -

Forex losses - -

Debt take overs - -

Losses on GFECRA - -

Total 262 418

6.1 Other material losses written offNote 2014/15 2013/14

6 R’000 R’000

Nature of losses

Air TicketsCar accidentsTax debt salary overpayment

17884

18821218

Total 262 418

7. Transfers and subsidies2014/15 2013/14R’000 R’000

Note

Provinces and municipalities 47, 48 56 901 350 53 811 709Departmental agencies and accounts Annex 1B 481 822 362 449Higher education institutions Annex 1C - -Foreign governments and international organisations Annex 1E 238 400Public corporations and private enterprises Annex 1D - -Non-profit institutions Annex 1F 9 280 13 888Households Annex 1G 349 4 833Total 57 393 039 54 193 279

Unspent funds transferred to the above beneficiaries

Notes to the Annual Financial Statements for the year ended 31 March 2015

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8. Expenditure for capital assets Note 2014/15 2013/14

R’000 R’000

Tangible assets 17 874 15 011

Buildings and other fixed structures - -

Heritage assets 27 - -

Machinery and equipment 27 17 874 15 011Specialised military assets 27 - -Land and subsoil assets - -Biological assets 27 - -

Intangible assetsSoftware - -Mastheads and publishing titles - -Patents, licences, copyright, brand names, trademarks - -Recipes, formulae, prototypes, designs, models - -Services and operating rights - -

Total 17 874 15 011

The following amounts have been included as project costs in Expenditure for capital assets

- -

Compensation of employees - -

Goods and services - -

Total - -

8.1 Analysis of funds utilised to acquire capital assets – 2014/15

Voted funds Aid assistance TotalR’000 R’000 R’000

Tangible assets 17 874 19 789

Buildings and other fixed structures - - -Heritage assets - - -Machinery and equipment 17 874 - 19 789Specialised military assets - - -Land and subsoil assets - - -Biological assets - - -

Intangible assetsSoftware - - -Mastheads and publishing titles - - -Patents, licences, copyright, brand names, trademarks

- - -

Recipes, formulae, prototypes, designs, models

- - -

Services and operating rights - - -

- - -

Total 17 874 - 19 789

Notes to the Annual Financial Statements for the year ended 31 March 2015

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8.2 Analysis of funds utilised to acquire capital assets – 2013/14

Voted funds Aid assistance TotalR’000 R’000 R’000

Tangible assets 15 011 15 011

Buildings and other fixed structures -

Heritage assets - - -Machinery and equipment 15 011 - 15 011Specialised military assets - - -Land and subsoil assets - - -Biological assets - - -

Intangible assetsSoftware - - -Mastheads and publishing titles - - -Patents, licences, copyright, brand names, trademarks - - -Recipes, formulae, prototypes, designs, models - - -Services and operating rights - - -

Total 15 011 - 15 011

8.3 Finance lease expenditure included in Expenditure for capital assetsNote 2014/15 2013/14

R’000 R’000

Tangible assets

Buildings and other fixed structures - -

Heritage assets - -

Machinery and equipment 2 895 2 852

Specialised military assets - -

Land and subsoil assets - -

Biological assets - -

- -

Total 2 895 2 852

Notes to the Annual Financial Statements for the year ended 31 March 2015

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9. Unauthorised expenditure

9.1 Reconciliation of unauthorised expenditureNote 2014/15 2013/14

R’000 R’000

Opening balance 1 123 1 123

Prior period error

As restated 1 123 1 123

Unauthorised expenditure – discovered in current year (as restated)

- -

Less: Amounts approved by Parliament/Legislature with funding

- -

Less: Amounts approved by Parliament/Legislature without funding

- -

Capital - -

Current - -

Transfers and subsidies - -

Less: Amounts transferred to receivables for recovery 15 - -Unauthorised expenditure awaiting authorisation / written off

1 123 1 123

Analysis of awaiting authorisation per economic classification

Capital

Current

Transfers and subsidies

Total

9.2 Analysis of unauthorised expenditure awaiting authorisation per economic classification2014/15 2013/14R’000 R’000

Capital 1 123 1 123

Current - -

Transfers and subsidies - -

Total 1 123 1 123

9.3 Analysis of unauthorised expenditure awaiting authorisation per type2014/15 2013/14R’000 R’000

Unauthorised expenditure relating to overspending of the vote or a main division within a vote

1 123 1 123

Unauthorised expenditure incurred not in accordance with the purpose of the vote or main division

- -

Total 1 123 1 123

Notes to the Annual Financial Statements for the year ended 31 March 2015

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10. Cash and cash equivalentsNote 2014/15 2013/14

R’000 R’000

Consolidated Paymaster General Account 3 972 322 1 952 942

Cash receipts - -

Disbursements - -

Cash on hand 16 -

Investments (Domestic) - -

Investments (Foreign) - -

Total 3 972 338 1 952 942

An amount of R 91 million is held in a separate Standard bank account. The amount is solely for the payment of CWP wages which did not disburse as at 31 March 2015 but will be cleared in the subsequent months.

11. Prepayments and advancesNote 2014/15 2013/14

R’000 R’000

Staff advances - 7

Travel and subsistence 76 167

Prepayments - -

Advances paid 11.1 150 104

SOCPEN advances - -

Total 226 278

11.1 Advances paidNote 2014/15 2013/1411 R’000 R’000

National departmentsAnnexure

8A150 104

Provincial departments - -

Public entities - -

Other entities - -

Total 150 104

Notes to the Annual Financial Statements for the year ended 31 March 2015

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12. Receivables2014/15 2013/14

R’000 R’000 R’000 R’000 R’000

NoteLess than one year

One to three years

Older than three

yearsTotal Total

Claims recoverable12.1

Annex 488 992 142 14 89 148 229

Staff debt 12.2 856 1 713 464 3 033 2 937

Other debtors 12.3 6 2 399 2 405 135 457

Total 89 848 1 861 2 877 94 586 138 623

12.1 Claims recoverableNote 2014/15 2013/1412 R’000 R’000

National departments 13 811 229

Provincial departments 198 -

Foreign governments -

Public entities 2 652 -

Private enterprises -

Higher education institutions -

Households and non-profit institutions -

Local governments 72 487 -

Total 89 148 229

12.2 Staff debtNote 2014/15 2013/1412 R’000 R’000

Tax debtBursary debtCar accidentsTelephone debtDebt accountSalary reversal controlUnauthorised use of government vehicleOtherDebt receivable incomeSalary acb recalls

6-

1 717448850

----

12

38-

1 790-

65587

-311

-56

Total 3 033 2 937

Notes to the Annual Financial Statements for the year ended 31 March 2015

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12.3 Other debtorsNote 2014/15 2013/1412 R’000 R’000

VAT input Account: CLSal: Medical AidDisallowance Miscellaneous :CA

2 3996-

2 3995

133 053

2 405 135 457

12.4 Impairment of receivables2014/15 2013/14R’000 R’000

Estimate of impairment of receivables 2 877 227

Total 2 877 227

13. Voted funds to be surrendered to the Revenue FundNote 2014/15 2013/14

R’000 R’000

Opening balance 2 056 685 1 419 117

Prior period error

As restated 2 056 685 1 419 117

Transfer from statement of financial performance (as restated) 3 976 101 2 057 335

Add: Unauthorised expenditure for current year 9 - -Voted funds not requested/not received 1.1 - (650)Transferred to retained revenue to defray excess expenditure (PARLIAMENT/LEGISLATURES ONLY)

- -

Paid during the year (2 056 685) (1 419 117)

Closing balance 3 976 101 2 056 685

14. Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund2014/15 2013/14R’000 R’000

Opening balance 906 123

Prior period error

As restated 906 123

Transfer from Statement of Financial Performance (as restated) 1 916 1 220

Own revenue included in appropriation - -

Transfer from aid assistance - -

Transfer to voted funds to defray expenditure (Parliament/Legislatures ONLY)

- -

Paid during the year (2 770) (437)

Closing balance 52 906

Notes to the Annual Financial Statements for the year ended 31 March 2015

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15. Payables – currentNote 2014/15 2013/14

R’000 R’000

Amounts owing to other entities - -

Advances received - -

Clearing accounts 15.1 91 279 80

Other payables 15.2 841 477

Total 92 120 557

15.1 Clearing accountsNote 2014/15 2013/1415 R’000 R’000

Salary Deduction Disallowance Acc: CA 22 28

Sal: Reversal Control :CATax DebtTravel and Subsistence AdvanceDisallowance MiscellaneousCWP Wage Account

21---

91 236

-14371-

Total 91 279 80

An amount of R 91 million is held in a separate Standard bank account. The amount is solely for the payment of CWP wages which did not disburse as at 31 March 2015 but will be cleared in the subsequent months.

15.2 Other payablesNote 2014/15 2013/1415 R’000 R’000

Debt Receivable IncomePension Recoverable AccSal: Income Tax: CLSal: Pension Fund

436

76932

956

38428

(Identify major categories, but list material amounts)

Total 841 477

Notes to the Annual Financial Statements for the year ended 31 March 2015

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16. Net cash flow available from operating activitiesNote 2014/15 2013/14

R’000 R’000

Net surplus/(deficit) as per Statement of Financial Performance 3 978 017 2 056 957

Add back non cash/cash movements not deemed operating activities (1 940 800) (1 539 406)

(Increase)/decrease in receivables – current 44 037 (133 101)

(Increase)/decrease in prepayments and advances 52 142

(Increase)/decrease in other current assets - -

Increase/(decrease) in payables – current 91 563 154

Proceeds from sale of capital assets (53) (16)

Proceeds from sale of investments -

(Increase)/decrease in other financial assets - -

Expenditure on capital assets 17 874 15 011

Surrenders to Revenue Fund (2 059 455) (1 419 554)

Surrenders to RDP Fund/Donor (34 818) (1 392)

Voted funds not requested/not received (650)

Own revenue included in appropriation -

Other non-cash items -

Net cash flow generated by operating activities 2 037 217 517 551

17. Reconciliation of cash and cash equivalents for cash flow purposesNote 2014/15 2013/14

R’000 R’000

Consolidated Paymaster General account 3 972 322 1 952 942

Fund requisition account - -

Cash receipts - -

Disbursements - -

Cash on hand 16 -

Cash with commercial banks (Local) - -

Cash with commercial banks (Foreign) - -

Total 3 972 338 1 952 942

Notes to the Annual Financial Statements for the year ended 31 March 2015

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18. Contingent liabilities and contingent assets

18.1 Contingent liabilitiesNote 2014/15 2013/14

R’000 R’000

Liable to NatureMotor vehicle guarantees Employees Annex 3A - -Housing loan guarantees Employees Annex 3A 11 11

Other guarantees Annex 3A -

-Claims against the department Annex 3B 877 200Intergovernmental payables (unconfirmed balances) Annex 5 556 1 095

Environmental rehabilitation liability Annex 3B -

Other Annex 3B -

Total 1 444 1 306

DML facilitators and consulting instituted action against the department claiming relief of R169,855.00 for additional services rendered. LIMA Rural development Foundation issued summons against the minister for breach of contract in the amount of R706,942.18

19. CommitmentsNote 2014/15 2013/14

R’000 R’000

Current expenditure

Approved and contracted 319 850 63 950

Approved but not yet contracted 23 085 519 320

342 935 583 270

Capital expenditure

Approved and contracted 40 1 720

Approved but not yet contracted - -

40 1 720

Total Commitments 342 975 584 990

Notes to the Annual Financial Statements for the year ended 31 March 2015

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20. Accruals and payables not recognised2014/15 2013/14R’000 R’000

Listed by economic classification

30 Days 30+ Days Total TotalGoods and services 279 996 60 106 340 102 43 972Interest and rent on land - - - -Transfers and subsidies - 24 24 3209Capital assets 999 72 1 071 505

Total 280 995 60 202 341 197 47 686

Note 2014/15 2013/14

R’000 R’000Listed by programme levelProgramme 1:AdministrationProgramme 2:Policy,Research and Knowledge ManagementProgramme3:governance and intergovernmental RelationsProgramme 4: Disaster Response ManagementProgramme 5:Prov and Mun Govt SystemsProgramme 6:Infra & Economic DevelopmentProgramme 7: Traditional Affairs

22 53191

8295 5531 283

310 910-

21 1338 4403 2812 489

58410 592

167

Total 341 197 47 686

Note 2014/15 2013/14

R’000 R’000Confirmed balances with other departments Annex 5 - 162Confirmed balances with other government entities Annex 5 - -

Total - 162

Accrual mainly relate to CWP payments that were not made at year end.

21. Employee benefitsNote 2014/15 2013/14

R’000 R’000

Leave entitlement 7 741 9 154

Service bonus (Thirteenth cheque) 5 641 6 042

Performance awards 4 077 3 849

Capped leave commitments 5 867 7 904

Other - -

Total 23 326 26 949

Notes to the Annual Financial Statements for the year ended 31 March 2015

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22. Lease commitments

22.1 Operating leases expenditure

2014/15Specialised

military equipment

LandBuildings and

other fixed structures

Machinery and

equipmentTotal

Not later than 1 year - - 31 297 31 297

Later than 1 year and not later than 5 years

- - 32 797 32 797

Later than five years - - -

Total lease commitments - - 64 094 64 094

2013/14Specialised

military equipment

LandBuildings and

other fixed structures

Machinery and

equipmentTotal

Not later than 1 year - - 29 887 - 29 887Later than 1 year and not later than 5 years

- - 63 884 - 63 884

Later than five years - - - - -Total lease commitments - - 93 771 - 93 771

Operating lease relates to lease of office buildings.

22.2 Finance leases expenditure**

2014/15Specialised

military equipment

LandBuildings and

other fixed structures

Machinery and

equipmentTotal

Not later than 1 year - - - 1 167 1 167Later than 1 year and not later than 5 years

- - - 743 743

Later than five years - - - - -Total lease commitments - - - 1 910 1 910

2013/14Specialised

military equipment

Land

Buildings and other fixed structures

Machinery and

equipmentTotal

Not later than 1 year 2 557 2 557

Later than 1 year and not later than 5 years

1 199 1 199

Later than five years - -

Total lease commitments 3 756 3 756

**This note excludes leases relating to public private partnership as they are separately disclosed to note no.35.

Finance lease relate to photocopiers and cell phones

Notes to the Annual Financial Statements for the year ended 31 March 2015

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23. Irregular expenditure

23.1 Reconciliation of irregular expenditureNote 2014/15 2013/14

R’000 R’000

Opening balance 417 073 727 438

Prior period error -

As restated 417 073 727 438

Add: Irregular expenditure – relating to prior year 185 282

Add: Irregular expenditure – relating to current year 155 375 403 600

Less: Prior year amounts condoned -

Less: Current year amounts condoned (94 630)

Less: Amounts not condoned and recoverable 15 -

Less: Amounts not condoned and not recoverable (22 393) (804 617)

Closing balance 550 055 417 073

Analysis of awaiting condonation per age classification

Current year 132 982 63 033

Prior years 417 073 354 040

Total 550 055 417 073

23.2 Details of irregular expenditure – current year

Incident Disciplinary steps taken/criminal proceedings2014/15R’000

Non-compliance to SCM relating to Other 25 668

Non-compliance to SCM relating to CWP 129 707

Total 155 375

23.3 Details of irregular expenditure condoned

Incident Condoned by (condoning authority)2013/14R’000

Total -

Notes to the Annual Financial Statements for the year ended 31 March 2015

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23.4 Details of irregular expenditure recoverable (not condoned)

Incident2014/15R’000

Total -

23.5 Details of irregular expenditure not recoverable (not condoned)

Incident Not condoned by (condoning authority)2014/15R’000

CWP relating to 2013/14 paid in 2014/15 22 393

Total 22 393

23.6 Details of irregular expenditures under investigation

Incident2014/15R’000

Non compliance to SCM relating to OtherNon compliance to SCM relating to CWP

420 348129 707

Total 550 055

24. Fruitless and wasteful expenditure

24.1 Reconciliation of fruitless and wasteful expenditure Note 2014/15 2013/14

R’000 R’000

Opening balance 8 2

Prior period error -

As restated 8 2

Fruitless and wasteful expenditure – relating to prior year -

Fruitless and wasteful expenditure – relating to current year 6

Less: Amounts resolved -

Less: Amounts transferred to receivables for recovery 15.6 -

Fruitless and wasteful expenditure awaiting resolution 8 8

Notes to the Annual Financial Statements for the year ended 31 March 2015

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24.2 Analysis of awaiting resolution per economic classification2014/15 2013/14R’000 R’000

Current 8 8

Capital - -

Transfers and subsidies - -

Total 8 8

24.3 Analysis of Current year’s fruitless and wasteful expenditure

Incident Disciplinary steps taken/criminal proceedings2014/15R’000

-

-

-

Total -

25. Related party transactionsPayments made Note 2014/15 2013/14

R’000 R’000

Goods and services 127 441 35 738

Interest and rent on land

Expenditure for capital assets

Payments for financial assets

Transfers

Total 127 441 35 738

Related party transaction relates to department of Traditional Affair and MISA.

26. Key management personnelNo. of

Individuals2014/15 2013/14

R’000 R’000

Political office bearers (provide detail below)

Officials:

Level 15 to 16 4 5 696 5 281Level 14 (incl. CFO if at a lower level) 8 10 688 16 063

Family members of key management personnel 41 40 664 45 694

Total 57 048 67 038

Notes to the Annual Financial Statements for the year ended 31 March 2015

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27. Movable Tangible Capital Assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015

Opening balance

Additions DisposalsClosing Balance

R’000 R’000 R’000 R’000

HERITAGE ASSETS 80 111 - 191

Heritage assets 80 111 - 191

MACHINERY AND EQUIPMENT 69 561 16 132 4 813 80 880

Transport assets 10 606 - 114 10 492

Computer equipment 43 613 8 334 3 439 48 508

Furniture and office equipment 8 421 2 290 64 10 647

Other machinery and equipment 6 921 5 508 1 196 11 233

- - -

SPECIALISED MILITARY ASSETS - - - -

Specialised military assets - - - -

BIOLOGICAL ASSETS

Biological assets - - - -

Capital Work-in-progress (Effective 1 April 2016)

- - - -

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS

69 641 16 243 4 813 81 071

Movable Tangible Capital Assets under investigationNumber Value

R’000Included in the above total of the movable tangible capital assets per the asset register are assets that are under investigation:

Heritage assets -

Machinery and equipment -

Specialised military assets -

Biological assets -

Notes to the Annual Financial Statements for the year ended 31 March 2015

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27.1 Additions

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015

Cash* Non-cash**

(Capital Work in Progress

current costs and

finance lease payments)

Received current, not

paid(Paid current year, received

prior year)

Total

R’000 R’000 R’000 R’000 R’000

HERITAGE ASSETS 111 - - - 111Heritage assets 111 - - - 111

MACHINERY AND EQUIPMENT

17 769 1 309 (2 895) (51) 16 132

Transport assets - - -

Computer equipment 7 456 1 322 (556) 112 8 334Furniture and office equipment 3 383 (569) (361) (163) 2 290

Other machinery and equipment 6 930 556 (1 978) 5 508

SPECIALISED MILITARY ASSETSSpecialised military assets

BIOLOGICAL ASSETS

Biological assets

TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS

17 880 1 309 (2 895) (51) 16 243

Notes to the Annual Financial Statements for the year ended 31 March 2015

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27.2 DisposalsDISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015

Sold for cashTransfer out or destroyed or

scrappedTotal disposals

Cash Received Actual

R’000 R’000 R’000 R’000

HERITAGE ASSETS - - - -Heritage assets - - - -

MACHINERY AND EQUIPMENT 114 4 699 4 813 53

Transport assets 114 114 52

Computer equipment - 3 439 3 439 1Furniture and office equipment - 64 64 -Other machinery and equipment - 1 196 1 196 -

SPECIALISED MILITARY ASSETS - - -

Specialised military assets - - - -

- - - -

BIOLOGICAL ASSETS - - - -Biological assets - - - -

- -

TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS

114 4 699 4 813 53

Notes to the Annual Financial Statements for the year ended 31 March 2015

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27.3 Movement for 2013/14MOVEMENT IN TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015

Opening balance

Prior period error

Additions DisposalsClosing Balance

R’000 R’000 R’000 R’000 R’000

HERITAGE ASSETS 80 - - - 80Heritage assets 80 - - - 80

- - -

MACHINERY AND EQUIPMENT 62 821 (213) 12 733 5 780 69 409Transport assets 9 438 - 1 306 138 10 606Computer equipment 36 924 (77) 10 013 3 247 43 613Furniture and office equipment 8 677 (54) 1 137 1 339 8 421Other machinery and equipment 7 782 (82) 277 1 056 6 921

SPECIALISED MILITARY ASSETS - - - - -Specialised military assets - - - - -

- - - - -

BIOLOGICAL ASSETS - - - - -Biological assets - - - - -

- - - - -

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS

62 901 (213) 12 733 5 780 69 641

Notes to the Annual Financial Statements for the year ended 31 March 2015

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27.4 Minor assetsMOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2015

Specialised military assets

Intangible assets

Heritage assets

Machinery and

equipment

Biological assets Total

R’000 R’000 R’000 R’000 R’000 R’000

Opening balance - 62 1 147 17 360 - 18 569Additions - - 41 2 046 - 2 087Disposals - 28 - 487 - 515 TOTAL MINOR ASSETS - 34 1 188 18 919 - 20 141

Specialised military assets

Intangible assets

Heritage assets

Machinery and

equipment

Biological assets Total

Number of R1 minor assets

- - 427 3 - 430

Number of minor assets at cost

- 17 2 340 13 188 - 15 545

TOTAL NUMBER OF MINOR ASSETS - 17 2 767 13 191 - 15 975

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2015

Specialised military assets

Intangible assets

Heritage assets

Machinery and

equipment

Biological assets Total

R’000 R’000 R’000 R’000 R’000 R’000

Opening balance - 64 1 000 16 601 - 17 665

Prior period error - (2) 147 147 - 292

Additions - - - 2 526 - 2 526

Disposals - - - 1 914 1 914 -

TOTAL MINOR ASSETS 62 1 147 17 360 - 18 569

Notes to the Annual Financial Statements for the year ended 31 March 2015

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28. Intangible Capital AssetsMOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015

Opening balance

Additions DisposalsClosing Balance

R’000 R’000 R’000 R’000

SOFTWARE 3 625 - 759 2 866

TOTAL INTANGIBLE CAPITAL ASSETS 3 625 - 759 2 866

Intangible Capital Assets under investigationNumber Value

R’000Included in the above total of the intangible capital assets per the asset register are assets that are under investigation:Software -

Mastheads and publishing titles -

Patents, licences, copyright, brand names, trademarks -

Recipes, formulae, prototypes, designs, models -

Services and operating rights -

28.1 DisposalsDISPOSALS OF INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015

Sold for cash

Transfer out or

destroyed or scrapped

Total disposals

Cash Received

Actual

R’000 R’000 R’000 R’000

SOFTWARE - 759 759 -

TOTAL DISPOSALS OF INTANGIBLE CAPITAL ASSETS

- 759 759 -

28.2 Movement for 2013/14MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015

Opening balance

Prior period error

Additions DisposalsClosing Balance

R’000 R’000 R’000 R’000 R’000

SOFTWARE 3 739 - - 114 3 625

TOTAL INTANGIBLE CAPITAL ASSETS

3 739 114 3 625

Notes to the Annual Financial Statements for the year ended 31 March 2015

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197

Chapter 5

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29. Prior period errors

29.1 Correction of prior period errors Note 2014/15

R’000

Revenue: (E.g. Annual appropriation, Departmental revenue, Aid assistance, etc.)Line item 1 affected by the change

Line item 2 affected by the change

Line item 3 affected by the change

Net effect

Notes to the Annual Financial Statements for the year ended 31 March 2015

Page 200: ANNUAL REPORT - COGTA

198

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Page 202: ANNUAL REPORT - COGTA

200

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Page 203: ANNUAL REPORT - COGTA

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Page 204: ANNUAL REPORT - COGTA

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205

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Page 210: ANNUAL REPORT - COGTA

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Page 211: ANNUAL REPORT - COGTA

209

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Page 212: ANNUAL REPORT - COGTA

210

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Page 213: ANNUAL REPORT - COGTA

211

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Page 214: ANNUAL REPORT - COGTA

212

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213

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Page 216: ANNUAL REPORT - COGTA

214

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Page 217: ANNUAL REPORT - COGTA

215

Co

op

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Go

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nnu

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Page 218: ANNUAL REPORT - COGTA

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Ch

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Co

op

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Go

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nnu

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Page 220: ANNUAL REPORT - COGTA

218

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Page 221: ANNUAL REPORT - COGTA

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Page 222: ANNUAL REPORT - COGTA

220

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Page 223: ANNUAL REPORT - COGTA

221

Co

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Page 224: ANNUAL REPORT - COGTA

222

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Page 225: ANNUAL REPORT - COGTA

223

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Page 236: ANNUAL REPORT - COGTA

234

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Page 237: ANNUAL REPORT - COGTA

235

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Page 238: ANNUAL REPORT - COGTA

236

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Page 239: ANNUAL REPORT - COGTA

237

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Page 240: ANNUAL REPORT - COGTA

238

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Page 241: ANNUAL REPORT - COGTA

239

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Page 242: ANNUAL REPORT - COGTA

240

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Page 243: ANNUAL REPORT - COGTA

241

Co

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Page 244: ANNUAL REPORT - COGTA

242

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Page 245: ANNUAL REPORT - COGTA

243

Co

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Page 246: ANNUAL REPORT - COGTA

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Page 247: ANNUAL REPORT - COGTA

245

Co

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Page 248: ANNUAL REPORT - COGTA

246

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Page 249: ANNUAL REPORT - COGTA

247

Co

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Page 250: ANNUAL REPORT - COGTA

248

Ch

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Page 251: ANNUAL REPORT - COGTA

249

Co

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Page 252: ANNUAL REPORT - COGTA

250

Ch

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Page 253: ANNUAL REPORT - COGTA

251

Co

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nnu

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Page 254: ANNUAL REPORT - COGTA

252

Ch

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C

oo

pe

rati

ve G

ove

rna

nce

Vo

te 0

3

AN

NE

XU

RE

1E

: STA

TE

ME

NT

OF

TR

AN

SFE

RS

TO

FO

RE

IGN

GO

VE

RN

ME

NT

AN

D I

NT

ER

NA

TIO

NA

L O

RG

AN

ISA

TIO

NS

Fore

ign

Gov

ern

men

t /

Inte

rnat

ion

al O

rgan

isat

ion

Tran

sfer

Allo

cati

onEx

pen

dit

ure

201

3/1

4A

dju

sted

Ap

pro

-p

riat

ion

A

ct

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l ove

rsA

dju

stm

ents

Tota

l A

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ble

Act

ual

Tr

ansf

er

% o

f A

vaila

ble

fu

nd

s Tr

ansf

erre

d

Ap

pro

-p

riat

ion

A

ct

R’0

00

R’0

00

R’0

00

R’0

00

R’0

00

%R

’00

0Tr

ansf

ers

Com

mon

wea

lth L

ocal

Gov

ernm

ent

Foru

m

238

--

238

238

100%

400

238

--

238

238

100%

400

Su

bsi

die

s

Tota

l238

--

238

238

100%

400

An

ne

xure

s to

th

e A

nn

ua

l Fin

an

cia

l Sta

tem

en

ts fo

r th

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de

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1 M

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20

15

Page 255: ANNUAL REPORT - COGTA

253

Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

ap

ter

5 •

Pa

rt E

: Fin

an

cia

l In

form

ati

on

AN

NE

XU

RE

1F

: STA

TE

ME

NT

OF

TR

AN

SFE

RS

TO

NO

N-P

RO

FIT

IN

ST

ITU

TIO

NS

Non

-Pro

fit

Inst

itu

tion

s

Tran

sfer

Allo

cati

onEx

pen

dit

ure

201

3/1

4

Ad

just

ed

Ap

pro

p ri

atio

n

Act

Rol

l ove

rsA

dju

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ents

Tota

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vaila

ble

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ual

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ansf

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% o

f A

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ble

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nd

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ansf

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d

Ap

pro

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riat

ion

A

ct

R’0

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R’0

00

R’0

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00

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00

%R

’00

0Tr

ansf

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Sou

th A

fric

an C

ities

Net

wor

k6 0

71-

-6 0

716 0

7110

0%

11 7

65

Uni

ted

Citi

es a

nd L

ocal

Gov

ernm

ents

of

Afr

ica(

UC

LGA

)5 5

94

--

5 5

94

3 2

09

57%

2 1

23

11 6

65

--

11 6

65

9 2

80

13 8

88

Su

bsi

die

s

Tota

l11

665

--

11 6

65

9 2

80

-13

888

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ne

xure

s to

th

e A

nn

ua

l Fin

an

cia

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tem

en

ts fo

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en

de

d 3

1 M

arch

20

15

Page 256: ANNUAL REPORT - COGTA

254

Ch

ap

ter

5D

ep

art

me

nt

of

C

oo

pe

rati

ve G

ove

rna

nce

Vo

te 0

3

AN

NE

XU

RE

1G

: STA

TE

ME

NT

OF

TR

AN

SFE

RS

TO

HO

US

EH

OLD

S

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seh

old

s

Tran

sfer

Allo

cati

onEx

pen

dit

ure

201

3/1

4

Ad

just

edA

pp

rop

riat

ion

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ct

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l O

vers

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just

men

tsTo

tal

Ava

ilab

leA

ctu

al

Tran

sfer

% o

f A

vaila

ble

fu

nd

s Tr

ansf

erre

d

Ap

pro

-p

riat

ion

A

ct

R’0

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00

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’00

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ansf

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Post

-Ret

irem

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Ben

efits

Act

of G

race

Empl

oyee

s Sev

eran

ce P

acka

ge

339 10-

- - -

- - -

339 10-

339 10-

100%

100% -

4 5

36 –

277

349

--

349

349

-4 8

13

Su

bsi

die

s

Tota

l3

49

--

349

349

-4 8

13

An

ne

xure

s to

th

e A

nn

ua

l Fin

an

cia

l Sta

tem

en

ts fo

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e y

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en

de

d 3

1 M

arch

20

15

Page 257: ANNUAL REPORT - COGTA

255

Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

ap

ter

5 •

Pa

rt E

: Fin

an

cia

l In

form

ati

on

AN

NE

XU

RE

3B

: STA

TE

ME

NT

OF

CO

NT

ING

EN

T L

IAB

ILIT

IES

AS

AT

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Nat

ure

of

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alan

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iliti

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du

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’00

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lled

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du

ced

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g th

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sin

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alan

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Cla

ims

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DM

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170

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-17

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ub

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--

877

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men

tal L

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Su

bto

tal

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L87

7-

--

877

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l Fin

an

cia

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ts fo

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de

d 3

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arch

20

15

Page 258: ANNUAL REPORT - COGTA

256

Ch

ap

ter

5D

ep

art

me

nt

of

C

oo

pe

rati

ve G

ove

rna

nce

Vo

te 0

3

AN

NE

XU

RE

4: C

LAIM

S R

EC

OV

ER

AB

LE

Gov

ern

men

t En

tity

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firm

ed b

alan

ce

outs

tan

din

gU

nco

nfi

rmed

bal

ance

ou

tsta

nd

ing

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lC

ash

in t

ran

sit

at y

ear

end

201

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5 *

31/0

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015

31/0

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014

31/0

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31/0

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31/0

3/2

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Rec

eip

t d

ate

up

to

six

(6

) w

orki

ng

day

s af

ter

year

en

d

Am

oun

t

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00

R’0

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artm

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PARTM

EN

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F H

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H

- - - - -

- - - - -

44

30

13 7

36 14 42

- - -14

-

44

30

13 7

36 14 42

- - - - -

- - -14

-

14 6

1514

14

615

14

Oth

er G

over

nm

ent

Enti

ties

MIS

AM

eraf

ong

Loca

l Mun

icip

ality

Ran

dfon

tein

Loc

al M

unic

ipal

ityTe

mbi

sile

Mun

icip

ality

Mhl

ontlo

Mun

icip

ality

- - - - -

- - - - -

2 7

94 73 69

67 8

45

4 5

00

-73 69 - -

2 7

94 73 69

67 8

45

4 5

00

- - - - -

-73 69 - -

75 2

8114

275

281

142

TOTA

L89 1

4715

689 1

4715

6

* Fo

r th

e C

ash

in t

ran

sit

colu

mn

s -

Ple

ase

not

e th

e fo

llow

ing:

- P

rovi

ncia

l dep

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ents

mus

t on

ly refl

ect

rece

ipts

fro

m d

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tmen

ts w

ithin

the

ir pr

ovin

ce

- N

atio

nal d

epar

tmen

ts m

ust

only

refl

ect

rece

ipts

fro

m o

ther

nat

iona

l dep

artm

ents

.

An

ne

xure

s to

th

e A

nn

ua

l Fin

an

cia

l Sta

tem

en

ts fo

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e y

ear

en

de

d 3

1 M

arch

20

15

Page 259: ANNUAL REPORT - COGTA

257

Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

ap

ter

5 •

Pa

rt E

: Fin

an

cia

l In

form

ati

on

AN

NE

XU

RE

5: I

NT

ER

-GO

VE

RN

ME

NT

PA

YA

BLE

S

Gov

ern

men

t En

tity

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firm

ed b

alan

ce

outs

tan

din

gU

nco

nfi

rmed

bal

ance

ou

tsta

nd

ing

TOTA

LC

ash

in t

ran

sit

at y

ear

end

2

014

/15

*

31/0

3/2

015

31/0

3/2

014

31/0

3/2

015

31/0

3/2

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31/0

3/2

015

31/0

3/2

014

Pay

men

t d

ate

up

to

six

(6)

wor

kin

g d

ays

bef

ore

year

en

dA

mou

nt

R’0

00

R’0

00

R’0

00

R’0

00

R’0

00

R’0

00

R’0

00

DE

PAR

TM

EN

TS

Cu

rren

t

Dep

artm

ent

of p

erfo

rman

ce m

onito

ring

and

eval

uatio

nD

epar

tmen

t of

tra

de a

nd in

dust

ryD

epar

tmen

t of

Tou

rism

Gau

teng

pro

vinc

ial T

reas

ury

525 8 8 15

525 8 8 15

Su

bto

tal

556

556

Tota

l556

556

An

ne

xure

s to

th

e A

nn

ua

l Fin

an

cia

l Sta

tem

en

ts fo

r th

e y

ear

en

de

d 3

1 M

arch

20

15

Page 260: ANNUAL REPORT - COGTA

258

Ch

ap

ter

5D

ep

art

me

nt

of

C

oo

pe

rati

ve G

ove

rna

nce

Vo

te 0

3

AN

NE

XU

RE

6: I

NV

EN

TOR

IES

Inve

nto

ryN

ote

Qu

anti

ty2

014

/15

Qu

anti

ty2

013

/14

R’0

00

R’0

00

Ope

ning

bal

ance

55 8

45

320

90 0

94

387

Add

/(Le

ss):

Adj

ustm

ents

to

prio

r ye

ar b

alan

ce-

--

-

Add

: A

dditi

ons/

Purc

hase

s -

Cas

h43 2

25

869

25 8

23

64

4

Add

: A

dditi

ons

- N

on-c

ash

(46)

--

-

(Les

s): D

ispo

sals

--

(63)

-

(Les

s): I

ssue

s(5

1 6

97)

(799)

(60 2

23)

(711

)

Add

/(Le

ss):

Adj

ustm

ents

(33 0

38)

(208)

214

-

Clo

sin

g b

alan

ce14

28

918

25

5 8

45

32

0

An

ne

xure

s to

th

e A

nn

ua

l Fin

an

cia

l Sta

tem

en

ts fo

r th

e y

ear

en

de

d 3

1 M

arch

20

15

Page 261: ANNUAL REPORT - COGTA

259

Co

op

era

tive

Go

vern

an

ce A

nnu

al R

ep

ort

• 2

014

| 20

15 •

Ch

ap

ter

5 •

Pa

rt E

: Fin

an

cia

l In

form

ati

on

AN

NE

XU

RE

8A

: IN

TE

R-E

NT

ITY

AD

VA

NC

ES

PA

ID (

not

e 14

)

Enti

ty

Con

firm

ed b

alan

ce

outs

tan

din

gU

nco

nfi

rmed

bal

ance

ou

tsta

nd

ing

Tota

l

31/0

3/2

015

31/0

3/2

014

31/0

3/2

015

31/0

3/2

014

31/0

3/2

015

31/0

3/2

014

R’0

00

R’0

00

R’0

00

R’0

00

R’0

00

R’0

00

NA

TIO

NA

L D

EPA

RT

ME

NT

S D

epar

tmen

t of

inte

rnat

iona

l R

elat

ion

and

Coo

pera

tion

150

150

Su

bto

tal

150

150

Tota

l15

015

0

An

ne

xure

s to

th

e A

nn

ua

l Fin

an

cia

l Sta

tem

en

ts fo

r th

e y

ear

en

de

d 3

1 M

arch

20

15

Page 262: ANNUAL REPORT - COGTA

Read the Annual Report for the Department of Traditional Affairs

on the reverse side of this book